Dominoes are falling...
Since late last year, when the agencies first raised the prospect, analysts have suggested any move to cut Ambac or MBIA below "AAA" could be disastrous. The concern is that downgrades will lead to a reduction in the value of portfolios at dozens of financial institutions, said Donald Light, a senior analyst at Celent LLC.
"Bond insurers are the lynchpin holding together valuations of portfolios of all kinds of financial institutions," Light said.
Could be a time to pick up another few shares of Berkshire Hathaway.