November 2, 2007 (LPAC)--"Fear is back" said a credit analyst at Deutsche Bank to the Financial Crimes, when talking about the panic over the financial crises, despite the new Fed rate cut and the unprecedented injection of 41 billion dollars into the U.S. banking system.This is the biggest one-day cash infusion since September 2001.

Panic is spreading as more sections of the mortgage bubble burst, unveiling larger bank losses and paralyzing further the inter-banking lending system. Now is the turn of mortgage insurers, so-called mono-line debt owners, who are going bust. Three of these, Radian, MBIA and Ambac, saw their stocks plunge yesterday, after the first of the three posted a quarterly loss and the latter two were rumored to suffer such losses. Strangely enough, such mono-line insurers still have top-notch credit ratings; however, a 'domino effect' is feared the moment they are downgraded.