Monoline Insures in Trouble

This report in some ways is unbelievable. The so-called monoline insurers are in hock very deep because they insured exotic bonds created by the idiotic investment banks. There was a desperate effort last month to protect their AAA rating (long story but basically will be a catastrophe if they lose their AAA ratings, and not just for them). We said at the time that if you had to jump through several hoops to "protect" someone's AAA rating, it pretty much insured that they weren't AAA. This morning comes more proof that we were correct. What's unbelievable is that the market seems so shocked at this!?!