My number 2 blowup
Moodys has cut Ambac's rating to a level that triggers the GIGs to pay and hence causes a liquidity event.
The liquidity event can be prevented by the insurance commissioner who might yet come to the party (and I think should in the interest of his policy holders). But if the insurance commission does not come to the party Ambac will file bankruptcy.
http://biz.yahoo.com/ap/081105/ambac_moody_s_downgrade.html?.v=1
J