I said earlier I rarely do this and here I go again posting another blogger's entire article. This is because he knows things most of us don't. K?
Even I can see that's equivalent to taking off to Europe for a week with $10 in your pocket and a couple hundred in the ol' ATM with the idea you'll not need any more than that.
Ambac, MBIA Inc. and Assured Guaranty, the three largest bond insurers, have set aside 0.04 percent of the total public finance debt they insure, or $520 million, to pay claims on municipal securities, according to regulatory filings by the companies.
No, that’s not a misprint: the claims-paying reserves are 4 basis points of the total quantity of municipal bonds insured. What’s more, the market capitalization of all three monolines combined is less than $5 billion; the amount of municipal bonds insured, by contrast, is well over $1 trillion.
What could possibly go wrong?
Here come 3 more bailouts?
Note: Headline links to source.