Ackman on MBIA & Ambac
William Ackman of Pershing Square on shorting the bond insurers:
"We're short the holding companies because we think they'll run out of cash and go bankrupt.
The biggest problem with the market right now is that people don't know where the risk is. Bond insurers are a black hole.
The mark to market values the companies place on their guarantees of securities backed by subprime mortgages are arbitrary and understate reality."
The Nattering One reminds: The above also applies to asset valuations by banks, lenders, Wall Street Brokers and the stock market in general.
Ackman said he personally stands to gain about $500 million if MBIA's holding company failed and that amount would be donated to charity.
Now thats putting your money where your mouth isn't.
"We're short the holding companies because we think they'll run out of cash and go bankrupt.
The biggest problem with the market right now is that people don't know where the risk is. Bond insurers are a black hole.
The mark to market values the companies place on their guarantees of securities backed by subprime mortgages are arbitrary and understate reality."
The Nattering One reminds: The above also applies to asset valuations by banks, lenders, Wall Street Brokers and the stock market in general.
Ackman said he personally stands to gain about $500 million if MBIA's holding company failed and that amount would be donated to charity.
Now thats putting your money where your mouth isn't.
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