Rumors by floor traders today that Merrill Lynch will announce huge write-downs tomorrow. Probably based on an earlier confirmed story about the law suit filed by Merrill against it's CDO insurer for $3.1B. Latest trend is for insurers to walk away from their obligations.
A lot of the problem is the "AAA-rated" insurers. They're not "walking away from their obligations", they're going bankrupt. The rating companies were on the take and the insurers were grossly under-capitalized. How do you spell "F-R-A-U-D"?
And yet, how many of those truly guilty of this massive "Fraud" will go to jail? Hmmmm how 'bout ZERO
