In light of Friday's Futures Fireworks and Moral Hazards Bernanke better have a spare helicopter ready just in case he burns out the motor in his current one too quickly. I have located one for him already. In a hedge fund blowup liquidation sale John Devaney who previously put his boat 'Positive Carry' up for sale is now seeking to dump his helicopter for $11 million. The reason cited for the sale was 'changing corporate travel requirements'.And just as Devaney's need is diminishing, it is increasingly clear that Helicopter Ben needs some emergency backup. It's funny how the market works that way. Mike Shedlock / Mishhttp://globaleconomicanalysis. blogspot. com/
BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Ambac Financial Group Inc., struggling to avoid the crippling loss of its AAA credit rating, took out insurance on $29 billion in securities it guarantees. The world's second-biggest bond insurer agreed to transfer the risk that the securities will default to Assured Guaranty Ltd., according to a statement today. Reinsuring the debt will free up capital backing those bonds, Ambac said. Ambac guarantees $556 billion of securities and the loss of its AAA rating jeopardizes the rankings on that debt as well as threatens the New York-based company's biggest source of revenue. 'Reinsurance is a valuable, capital-efficient and shareholder-friendly tool for managing risk and capital,' Ambac Chief Executive Officer, Robert Genader said in the statement. My Comment: Reinsurance on $29 billion out of $556 billion is unlikely to do anything but waste mone...
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