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The financial sector now lack of cash flow since banks started to tie up their money and lenders more restricted for borrowers eligibility. Financial sectors started to meltdown and some of lenders already filed bankruptcy. Bond insurers taking a very important in the financial sector and now banks need to protect a more than sufficient capital to not only protect their triple A rating but also secure the whole mortgage market and its future business.

Fed already pump in billions dollar into the market but people have no idea where is this money go and lack of confident that can do much about the market, it is time for Fed to show people.

For the past months, all we see the banks keep posting writedowns, losses, but haven’t really see how banks help out the whole economy and troubled firms.  Now, bond insurer is the center focus of the market, largest bond insurer, MBI just successfully raise 2.6billion dollars from selling bonds, stocks, securities. However, the uncertainties for bond industry is still remain.

Banks may face up more than $300 billions margainal call and mortgage market needs 1 trillions dollar, this headlines really scare people and the whole market and eventually we would believe the recession is coming or already is.

IMO, the Fed would take next step to inject a huge capital to ABK and cheer up the market through its middle man, banks. to free up a certain amount of money for financial sector which people can really feel more comfortable of. Bond insurer such as ABK is taking position to prevent damage for banks.

It is just the matter of time. The banks bailout can take abk all the way to $20+ because it scure ABK rating from all three agencies and strenthen its financial position for its future businiess,,, if any of bank like Citi, BAC,etc buyout ABK, and inject suffient funds that would actually make abk replace MBI as largest bond insure of this nation, looking good tho… since MBI is insure too much, don’t think anyone would be able to take care of it…sell mbi and buy abk is wise decision .

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