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Countrywide Crushed Again (Lost another 16% of their stock value to Ditech)
http://www.thestreet.com/s/countrywide-crushed-again/newsanalysis/banking/10373527.html?puc=_dm ^ | 8-10-07

Posted on 08/10/2007 5:53:06 AM PDT by Hydroshock

Countrywide (CFC - Cramer's Take - Stockpickr - Rating) plunged 16% in early trading a day after the struggling mortgage lender warned in a regulatory filing that mortgage market disruption could hurt the company's financial condition.

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"Since the company is highly dependent on the availability of credit to finance its operations, disruptions in the debt markets or a reduction in our credit ratings could have an adverse impact on our earnings and financial condition, particularly in the short term," Countrywide said in the risk factors section of a filing made late Thursday.

Countrywide shares have been tumbling since problems with the subprime mortgage market came to light back in February. The stock hit a 52-week high of $45 just before rivals like HSBC (HBC - Cramer's Take - Stockpickr), New Century (NEWCQ - Cramer's Take - Stockpickr) and NovaStar (NFI - Cramer's Take - Stockpickr - Rating) said they would take big losses on loans gone sour to homeowners with poor credit histories. New Century subsequently filed for Chapter 11 bankruptcy.

Countrywide dropped as low as $23 Monday amid worries about the health of the credit markets before bouncing back during a widespread market rally earlier this week.

Shares fell $4.61 early Friday to $24.05.


TOPICS: Business/Economy; Miscellaneous; News/Current Events
KEYWORDS: countrywide; hsbc; mortgage; stocks; wallstreet
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To: Moonman62

Ant eh sad part is it will nto help in the long run, this is a bandaid on a sucking chest wound. Once the arms reset in October adn Febuary is when it will get interesting.


61 posted on 08/10/2007 7:27:25 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

Polly want a cracker?


62 posted on 08/10/2007 7:31:46 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: RockinRight
ARM’s still can’t adjust beyond their parameters - i.e., the margin and index. The only way this affects ARM rates is if the indexes like MTA, LIBOR, and COFI go up, and, if anything, they’ll probably go down once all this hubbub calms down.

Yep.
63 posted on 08/10/2007 7:35:50 AM PDT by VegasCowboy ("...he wore his gun outside his pants, for all the honest world to feel.")
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To: Moonman62

Trump on CNBC. I wonder if he is loaded up on adjustables.


64 posted on 08/10/2007 7:55:39 AM PDT by Orange1998
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To: Dems_R_Losers

Not everyone is freakin’ out. I mean, somebody’s buying CFC, and for good reason. Maybe it’s got more to burn, but with all that cash, the stock price is heading into giveaway status.


65 posted on 08/10/2007 8:12:37 AM PDT by nicollo (you're freakin' out!)
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To: Moonman62

I know what you mean. LOL!


66 posted on 08/10/2007 9:40:06 AM PDT by Toddsterpatriot (Ignorance of the laws of economics is no excuse.)
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To: Hydroshock

Just wondering: Who’s stoopidah, the people who took out these loans they couldn’t repay or the folks who made them.


67 posted on 08/10/2007 9:42:43 AM PDT by Lonesome in Massachussets (NYT Headline: Protocols of the Learned Elders of CBS: Fake but Accurate, Experts Say)
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To: Lonesome in Massachussets

The ECB and the Fed for throwing money out to cover them both.


68 posted on 08/10/2007 10:18:38 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock
The ECB and the Fed for throwing money out to cover them both.

Providing liquidity is the same as throwing money out?

69 posted on 08/10/2007 10:21:19 AM PDT by Toddsterpatriot (Ignorance of the laws of economics is no excuse.)
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To: Toddsterpatriot

This was like air dropping diesel on a forest fire. It will not solve the 2 underlying causes of the problem, trillions in home values lost adn teh arms that are resetting. If anything this will make it worse.


70 posted on 08/10/2007 10:29:23 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock
This was like air dropping diesel on a forest fire.

Providing liquidity? That's funny. Wrong, but funny.

It will not solve the 2 underlying causes of the problem, trillions in home values lost adn teh arms that are resetting.

Nobody said that it would. Nobody said that's the purpose of providing liquidity.

If anything this will make it worse.


71 posted on 08/10/2007 10:34:08 AM PDT by Toddsterpatriot (Ignorance of the laws of economics is no excuse.)
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To: Toddsterpatriot

We sahll see, on Oct. and Feb. when the ARMs reset.


72 posted on 08/10/2007 10:35:21 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

Is that when the liquidity diesel will catch fire?


73 posted on 08/10/2007 10:44:34 AM PDT by Toddsterpatriot (Ignorance of the laws of economics is no excuse.)
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To: Toddsterpatriot

Scoff if you will but we will be in a recession by this time next year, if not 6 months.


74 posted on 08/10/2007 10:52:17 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock
Scoff if you will but we will be in a recession by this time next year, if not 6 months.

Because adding liquidity made things worse?

75 posted on 08/10/2007 10:57:27 AM PDT by Toddsterpatriot (Ignorance of the laws of economics is no excuse.)
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To: Toddsterpatriot
There is going to be a market correction, the longer we put it off by throwing cheap money at it the worse it will be. The time to stopped this was 24 to 18 months ago by tightening lending standards. No I am afraid it is inevitable.
76 posted on 08/10/2007 11:01:52 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock
They would have been wiser to let it ride until at least Monday to see what shakes out. I see this as a poorly thought out knee jerk reaction, not prudent policy.
77 posted on 08/10/2007 11:03:33 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Orange1998
NEW YORK (MarketWatch) — Fed fund future prices suggest the U.S. Federal Reserve will be forced to do an emergency inter-meeting rate cut within the next week

I predicted this over a week ago. We're going to see substantial interest rate cuts soon...Starting no later than next month.

78 posted on 08/10/2007 11:04:43 AM PDT by dragnet2
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To: Hydroshock
There is going to be a market correction, the longer we put it off by throwing cheap money at it the worse it will be.

You know that providing liquidity is not the same as "throwing cheap money at it"? I guess not.

No I am afraid it is inevitable.

So what's our GDP growth going to be for all of 2007? How much will GDP shrink in 2008?

79 posted on 08/10/2007 11:04:45 AM PDT by Toddsterpatriot (Ignorance of the laws of economics is no excuse.)
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To: Gabz
Nothing at all.

Countrywide is well capitalized and will weather this storm fine. The regulatory filing was required for the protection of investors. It isn't a signal that they are in some kind of financial distress.

Even if something did happen, your mortgage is a contract and would have to be honored. You might have to send your payments to a different address, but the terms of the note cannot change.

80 posted on 08/10/2007 11:10:04 AM PDT by gogeo (Democrats want to support the troops without actually being helpful to them.)
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