You’ll hear a lot of this today, “it’s fear-based, not fact-based”. Nope. The facts of the matter have been well-known for years. I’m only surprised it took this long.
Maybe this guy from the NY Times, and the guy from Blackstone on CNBC this morning, who also sang the “fear not facts” song, can explain why triple-A rated bond-insurer MBIA had to ask for 14% when it issued its own loans two weeks ago. And why those bonds have already lost 30% of their face value.
I’m pretty sure MBIA is not triple-A rated.