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From the latest MBIA securities offering prospectus: "An investment in the shares involves a high degree of risk. You should not invest unless you can afford to lose your entire investment."

You'd better believe it. Let's see who'll be silly enough to actually buy these!  I browsed through the prospectus of the last surplus notes offering and found that anyone who actually read the prospectus would have been  a fool to have bought those notes. Well, I don't want to insult anybody who bought the notes, so let's just assume they didn't read the prospectus (which doesn't sound very bright either, but let's give MBIA investors the benefit of the doubt). They are trying to raise $750 million, when my various musings dictate they need to raise about $6 billion. Hmmm, they seem to be falling short. The last offering lost the investors over 20% of thier principal the first week of trading (just as I anticipated in my post the week before it started trading). This loss totally trumps the 14% annual return you might have gotten if the NYS Dept. of Insurance didn't curtail the payments.