They're Not Fixing the Root Cause -- Housing By Jim Cramer About this article: Everything is twice as bad as we thought it was. That's because everything that was sold got insured, and the insurance was written by companies that had no idea what the heck they were insuring! Today there's an article in the Journal about synthetic CDOs, meaning insurance that is written on CDOs in case they fail, which therefore means that there is a second set of CDOs out there because they are failing, so the insurers have to make good but most of them didn't know what the heck they were insuring, so there's double the losses. Of course, that shouldn't be the case, because insurance companies typically have reserves or at least have models -- like if it were property casualty, they'd have loss models, and if it were life insurance, they'd have actuarial models. Of course, the insurance was written by who the heck knows -- a... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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