ANOTHER DOMINO ABOUT TO TOPPLE

(h/t Atrios)

ACA Capital Holdings, as you can see from the above graph, isn't looked upon very well in the marketplace. The reason is that ACA provided insurance for tens of billions in sub-prime crap and has only a little over 1 billion in assets.

Now, when ACA goes belly-up, that means the paper it insured will be worth MUCH LESS and, as Atrios notes, will have to be carried "on the books" by many who liked the fact that they didn't have to show the world what they actually owned.