Thursday, January 24, 2008

don't mean a thing

The Tutor might entitle this "Cakewalk with call and response" -

Call: "The bond insurers scare people to death."

Response: It's almost impossible to gauge how much banks stand to lose if the bond insurers are stripped of their AAA ratings.

Call: "Do I have it right that the banks themselves are going to bail out the insurance companies that are providing them insurance, and it's going to cost maybe $5 billion, maybe more?"

Response: America's biggest mortgage bond insurers collectively need a $200 billion (£101 billion) capital injection if they are to maintain their key AAA credit ratings.

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