300,000 bonds on the \'threatened\' list in 2 days(MT)

Oh, and while we're at it, let's talk about the over 150,000 bondsplaced on negative ratings watch last night - yes, you read that right,over one hundred fifty thousand issues. Most of them municipals, and all on the back of the threatened downgrade of MBIA. Today, another batch of the same basic size went off underwritten by Ambac, bringing the total threatened with downgrades over the last two days to approximately 300,000 issues.

No, you're not reading that wrong.

300,000 bonds over two days have been placed on the "threatened" list for downgrades in their ratings.

This is, for all intents and purposes EVERY SINGLE BOND INSURED BY THESE FOLKS OVER THE LAST THREE OR FOUR YEARS!

Never mind that Moody's, S&P and Fitch, were they actual proactiveratings agencies who had some sort of belief that they had aresponsibility to protect actual investors, would have already cut thisentire sector's credit ratings deep into junk territory.

But you see, there's a little conflict of interest problem with that. The Investment banks and "guarantors" are the ones who do business with these agencies. In fact, they are the only people who do business with these agencies!

Do you really expect them to bite the ONLY hand that feeds them?