Thursday, April 9, 2009

Bullish on Downgrades

When the history of this period is written, yesterday may become known as "Downgrade Wednesday." To quote Montagu Norman, "I should like this prediction to be filed for future reference."

S&P started off by putting all CMBS instruments on watch. For dessert, they downgraded the entire mortgage insurance sector. Moody's, not to be outdone, downgraded Berkshire Hathaway.

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