Ambac

bailout is a bust. Nothing new here. They will raise $1.5 billion through a new equity offering. In other words, the banks are still stuck with all of their CDS exposure coming back onto their balance sheets. No wonder the bond markets are imploding. I will review the list of biggest Ambac bagholders for the possibility of shorting more:
C, UBS, WB, BCS, BAC, and WM. Already got C, and WM has been beaten silly already. I wonder who's going to take indirect damage from this.... It may yield a greater risk/reward ratio. I'll have to think about this. Who may have to sell muni's that are downgraded from AAA to ? Pension funds, ...?