Monoline Archive

Monoline proposal

Fed by itself or working with AAA counterparty offers to sell supplemental bond insurance to investors. (AFLAC concept) Maybe charge a point and insure up to a price of maybe 99, or whatever combo works. Worst case the current insurers are downgraded to AA, so they should still be able to cover ...Read More

The Fed’s next move

If I were a mainstream economist and on the FOMC (I’m not either, they are both), and world equity markets were firm going into the meeting next week with the monoline issue put to bed, I’d opt for no cut. That would be expected to rally the $, take down gold and ...Read More