Tuesday, 22 January 2008

World's Largest Bond Insurers Collapsing!

Ambac and MBIA, the two largest bond insurers in the world, are careening toward collapse.

Barring a miraculous rescue, their demise could promptly deliver a massive blow to the U.S. bond market ... severely damage America's already shaken big banks ... and largely trash the net worth of millions of investors.

Yet, strangely, except for investors who owned Ambac and MBIA shares themselves — and who have now driven those shares into the gutter — few are paying attention.

And fewer still are taking appropriate defensive action.

According to this story the US bond market is looing at absolute destruction. When this happens the fallout will be immense. The entire US economy is likely to collapse. Extreme danger.

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