People are having a hard time saying the truth. MBIA is rated AAA. MBIA is a company that insures bonds against default. This allows institutions who do not have a AAA rating to have their bonds rated AAA so that retirement funds and insurance companies can buy them.

Everyone knows that MBIA is no longer close to being a AAA level company. If MBIA loses its AAA rating, all the bonds that it insures lose their AAA rating. So saying that everyone knows that MBIA is not even close to being a AAA company is to say that their are a lot of bonds out there that don’t deserve an AAA rating.

With that in mind, watch the clip below (h/t Calculated Risk)