Economics Update

I'm lazy, so let's just say, Oil up, retail gasoline up, and dollar down.

I'm beginning if I should stop covering the above swings daily....day-to-day has too much noise to signal.

On the other hand, the rumors of massive writedowns at Citi over mortgages, LBO loans, CDOs, etc. is probably more significant, as is the fact that Moody's finally cut MBIA's credit rating.

Moody's Investors Service on Thursday stripped the insurance arms of Ambac Financial Group and MBIA of their AAA ratings, citing their impaired ability to raise capital and write new business.

....

Moody's cut Ambac Assurance three notches to "Aa3," the fourth highest investment grade, and downgraded Ambac Financial three notches to "A3," the seventh highest investment grade, from "Aa3."

MBIA Insurance was cut five notches to "A2," the sixth highest investment grade, and MBIA Inc was cut five notches to "Baa1," three steps above junk, from "Aa2."

This is actually more significant than just making their borrowing money more expensive, it means that some of the holders of insurance contracts the right to terminate or require the additional collateral from the company.

It's what Atrios calls, "Another Jenga Piece" coming out.