PMI ran on fumes for over 2 years. It was apparent for years that it wouldn't make it. MGIC is not going down over this sudden failure to meet capital requirements and the Freddie Mac issue. The federal government wants private mortgage insurers. This is the biggest one. There aren't many left besides this one. The powers that be aren't going to let MGIC die without doing all they can to get it through this. Look how long they let PMI continue. Oh, and the shorts who are crowing have been saying the same thing since 2008. I loaded up when MTG hit $.70 in March 2009, and the shorts were saying it was the end then.
You are wrong dude. Mgic had escaped death spiral many times over the past few years because somehow they were able to find investors to support their capital; but this time is differrent because look like no one support them in raising their capital level and it seems like they have no more ammunation left. Right now they breach their max ratio 25:1; this is it and the next release new will be SEIZE. I believe since 2008 collapse, they have never breached 25:1 until now.