In case you still think ‘subprime is contained’ check out the charts of these stocks:
ABK Ambac Financial
AIG Amer Intl Group
MBI MBIA Inc
These companies sell insurance for real-estate backed securities
ABK has dropped from $73 to $30 in the last 14 trading days – MBI from $69 to $39 – AIG from $70 to $60 (they are more diversified that ABK and MBI)
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I said it several weeks ago and I will say it again – ALL of these real estate backed derivatives (MBS, CDO, etc) are WORTHLESS PIECES OF PAPER
The people that insure this trash paper appear to be finding this out as well
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The Fed will continue to lower interest rates and inject money into the financial system as long as the financial stocks are dropping – they don’t give a shit about you and me – it is only the pain of their banking cohorts that stirs them to action
The banking industry is in the process of collapsing (thank you, Lord!) – don’t be distracted by the blame game that is and will be going on for the next few years (it’s Greenspans fault, it’s Ben’s fault, it’s the MSMs fault, etc) – the root cause of all our economic problems are:
FIAT CURRENCY, CENTRAL BANKING and RESERVE BANKING
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Here’s Mish questioning the health of the banking industry:
