Friday in the crunch with George

The crunch is getting crisper if not more chocolatey. Currently suffering are:

• The monolines. CIFG for instance is about to get a capital injection according to the WSJ. Now would be a great time to set up a new monoline, writing pure muni business. Perhaps Warren will help?
  
• Any bank relying on the securitisation market for part of its funding, according to FT alphaville.
  
• The ratings agencies, who many people (including David Einborn) think screwed up big time.
  
• Fannie and Freddie, who need more capital, according to CNN.
  
• Anyone who was long equity: the markets have been falling, wiping out the gains so far this year on the S&P according to Bloomberg.
  
• RMBS, CMBS, CDO and even covered bond holders.
  
• As we said yesterday, the writers of liquidity lines and anyone who wants to issue ABCP:
  
  (This figure and the next one come from an article by Charles Calomiris.)
  
• And just to end on a cheery note, Hank Paulson says 2008 will be worse than 2007 for the U.S. housing market according to the Guardian. Not that 2007 was so wonderful:
  

I'm personally not in the the-world-is-coming-to-an-end school but these signals are undoubtedly strongly negative. Let's be careful out there.