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Monolines Sp To The Rescue

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by Felix Salmon
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Feb 25 2008 12:00am EDT

Monolines: S&P to the Rescue

Now that S&P has affirmed the triple-A ratings on both MBIA and Ambac, Bill Ackman et al are going to have to start playing the long game. With their triple-As seemingly firmly in hand for the time being, any implosion is going to be a long and drawn-out affair rather than something near-term and spectacular. Jon Ogg is unimpressed:

What is obvious as a nose wart is that by now everyone in the world realizes that the ratings agencies are artificially keeping the rating elevated.

I think that's true, but then again it was always a very risky game, placing large financial bets on the ratings agencies being paragons of objectivity. If MBIA and Ambac fail, it will be despite the ratings agencies, not because of them.

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