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Wednesday, August 15, 2007

Countrywide Financial Is The New Enron

I posted earlier this week before the start of trading on Monday that I thought Countrywide Financial would declare bankruptcy by the end of the week. Well today their stock dropped another 13% to around $21. It was down to almost $19 during the day and rallied a little(it rallied from people covering their short sales). The fact of the matter is that Countrywide is the Enron of the financial world. It is the biggest maker of mortgages in the country today. Their problem was that they've given everyone with a pulse a mortgage in the last few years and now these people are starting to default on their mortgage. There is plenty of blame to go around and I will do a post mortem on the patient after the bankrupty is declared which should be any day now.

I almost forgot to mention what Wall Street bailout cheerleader extraordinaire Larry Kudlow recommended on his show this afternoon. He wants the Fed to start buying all these worthless sub-prime & Alt A f**ked up mortgages tomorrow morning to help bail out all his Wall Street buddies. Some Republican he is. That's socialism Larry and it better not happen. These idiots made their bed and they have to lay in the big pile of steaming crap right now that they created.

3 Comments:

  • At 8:28 PM, Blogger Agent Orange said…

    "Their problem was that they've given everyone with a pulse a mortgage in the last few years and now these people are starting to default on their mortgage."

    Not so fast Allan!

    In about 1993 I have took mortgage with the CW and as self employed have reported my normal income after tax. I have sold that property and bought another and got financing via a small brokerage. To avoid mortgage insurance, I have reported taxable income because it was higher. After about 6 month, I have received notice from the IRS for an audit showing a complaint from the CW who bought my mortgage from the brokerage having discrepancy in the reported income between the first and second application.

    Obviously during the audit the IRS realized that there was no tax fraud and I have passed with flying colors.

    So, I would say Allan, they did their do diligence fairly good.

    However, I hope that they will bankrupt just because they were assholes about it. After all, the mortgage was not made to them. They bought it from someone else.


    Furthermore, I hope that this bankruptcy will have some impact on the HOA and CAI industry because I dislike them immensely.

    To see HOA fat lesbian board member bitches homeless would made my day.

    -Stan

     
  • At 6:00 AM, Anonymous Phil Paule said…

    Allan

    A sharp down turn in the markets should highten the message of Dr. Paul to many.

    How is DSL going to do in this shakeout ??

     
  • At 6:25 AM, Blogger Allan Bartlett said…

    Exactly Phil. People are going to open their monthly 401k statements in a few weeks and shit a brick. This country needs a 180 degree course change on our monetary policy.

    I don't know how Downey will do. They are getting hammered along with all the other lenders right now. At least they have a brick & mortar bank system. I guess we'll see how bad their loan portfolio pretty soon. I think they will survive, but theior stock could go down to $20 IMO.

     

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