If you watched the show, you'd know his plan is to get Buffett to take the munis and grab the crap, backed with govt guarantees.
NO SHAREHOLDER EQUITY left for current shareholders.
Now they may sweeten it a bit, but the real concern is to
1. Save the system
2. Save the banks
3. Share jobs at MBIA and ABK
Shareholders aren't in that list.
Are we really having a serious discussion about Jim Cramer's "plan"?
He does not have standing to have a plan. Cramer is an entertainer.
What's the latest on Brittney Spears' plan for MBIA. Are the shareholders protected or, as she says, "do you wanna a piece of me?"
What Cramer forgot to say was......The amount of cash it takes to start this Business from scratch.
For every Dollar of Premium, written on new Debt takes $1.10
for the entire first YEAR!
Muni Bond insurance is a capital INTENSIVE business. Buffett is no fool, he will need at least 1 portfolio.
Don't get me wrong, Cramer is smart, but the devil is in the details......imo.
Over the next decade, the U.S. will be issueing vast amounts of debt just to maintain the highway infrastructure. That is why the regulators stepped up. We are talking at least 1 Trillion of debt. imo.
The oracle has deep pockets, there is no doubt.......However, that is a number, no single Business will want. imo
You are flat wrong. That has never been mentioned you are pulling this out of the air. Warburg and 3rd avenue are in with no such restrictions. Ambac or weaker sisters may possibly be in those discussions. MBI has shown the ability to raise capital now and benefit from the rate cuts later. Prove you have any evidence or just admit you are panic selling short.
Cramer's plan is another way for Ackman to profit. THe short squeeze will continue, regardless of your crap postings and Cramer's crap plans, that noone but you and other Ackman shills are interested.
Where is the justification for equity to survive? The best you can hope for with a bailout will be some type of option plan, a packaged bankruptcy.
Cramer mentioned this himself. There would be a bailout and if things aren't as bad as possible then the benefits would go to shareholders DOWN THE ROAD.
Meanwhile, equity would be wiped out with long term options given to shareholders.
That's the best long term plan for current shareholders ACCORDING TO THE CRAMER PLAN.
This does not change the REAL ESTATE MARKET.