Friday, February 15, 2008

Splitting the Baby

As CR says, the only way this could work is if the almost inevitably bankrupt part of the business is surgically removed from the traditional muni insuring part of the business. Then all those bits of big shitpile which we've pretended have AAA rating because they're "insured" cease to be insured and lots of financial institutions have a problem.

It's fun when that last Jenga piece comes out!