http://wallstreetexaminer.com/blogs/winter/?p=1429

When It Rains It Pours. Put On the Tin Foil Hats
Friday, February 15th, 2008 at 3:31 AM

"AAA" rated mortgage insurer, FGIC was downgraded yesterday, and when
it rains it pours, in this case six notches, with the senior bonds
going to junk status. One has to ask the obvious question: how can an
outfit be AA2 one day, and junk the next? Perhaps the sudden
realization that an obscure tin foil hat blog was right all along?

NEW YORK, Feb 14 (Reuters) - Moody's Investors Service on Thursday
cut its top "AAA" ratings on FGIC Corp's bond insurance arm, citing
the insurer's weakened capital position and business profile. Moody's
cut Financial Guaranty Insurance Co's "AAA" insurer financial strength
rating by six notches to "A3," the seventh-highest investment grade
rating. It also cut parent company FGIC Corp's senior debt rating to
"Ba1," the highest junk level, from "Aa2."

The credit rating agencies will need to get the Big Chief Tablets out
on auto loans as well. And with all the stretching done on length of
loans, there promises to be poor recoveries here as well.