With California spending every spare cent on past bonds, two to three times their face value upon completion, and more being proposed to voters who just can't say no, you may be on to something.

For a change, lol!

On Thursday, the major indices were able to rally, despite opening sharply lower in the wake of a disappointing unemployment claim report. Sentiment was lifted due to a bond insurer's positive outlook. This is in contrast to Wednesday, when concerns over bond insurers caused the stock market to give up all of its FOMC induced gains.
 http://finance.yahoo.com/ma...

Wishful thinking, methinks.  Whistling past the graveyard.

ROBB,

The bond insures positive outlook was no more than MBIA CEO Dunton's Chirping to the tune of Dixie. (His mouth is so dry from fear. He can no longer whistle)..

The drop at the end of the market was due to Rueters report that Dunton was full of BS.

A number of insures are in immediate need of a Bail out of some sort. Talk is of governmental Bail out. No financial institutions are willing to risk their money. And will not do so until it is obvious that no one else will. So Every one must, or everyone must fail.

Rumors are that Country wide does not have equity to cover loses and make a buy out by B of A work.

Worse than corporate Welfare. This is a helping hand up , for the criminal that is looting your house.

ROBB,

notice the time stamp on the following headline: (yours before closing. mine after)

FGIC loses "AAA" rating, MBIA may be cut

Thu Jan 31, 2008 5:09pm EST

http://www.reuters.com/arti...

Standard & Poor's on Thursday cut its "AAA" ratings on FGIC Corp's bond insurance arm, and placed its top ratings on the bond insurance arm of MBIA Inc (MBI.N: Quote, Profile, Research) on review for downgrade.

The rating agency also said it may cut the "AAA" rating of XL Capital Assurance Inc, the bond insurance arm of Security Capital Assurance (SCA.N: Quote, Profile, Research)

The rating action is a blow to bond insurers that are scrambling to raise capital required to hold their top ratings. The companies are at risk of losing the ratings because of expected losses from risky residential mortgage securities

Not surprised at all. I'd imagine bond insurers are kind of like reinsurers in that they usually just collect their premiums and go on their merry way without ever having to pay a claim. Remember Lloyd's of London and hurricane Andrew? It nearly wiped them out when Florida was destroyed beyond their wildest dreams.

ROBB,

No one wants a regulator until AFTER their treasure has been stolen..

In the absence of the regulator. There is always what King George calls the, 'Gray areas of the Law”.

In the absence of regulators, the greatest sector of wealth is in criminality. The absence of regulators leave hope that you will be the beneficiary of the crime. Not the Benefactor..

Everyone wants to be, 'Don (you fill in the blank)'. Why leave your hopes pinned to Don Quixote, when you can cash them in at the hood... Just like a Crip with a tie...

Hope springs eternal.

Google has been ugly..

714 down to 563 in just a month...