If you hurry, you can catch a video of stock analyst who points out how Countrywide’s risk of bankruptcy are not over. He provides a little objectivity to today’s perhaps pollyanna market reaction.
Two major points: 1) why did they escape from a Merrill Lynch sized writeoff; 2) how are they making a profit if their once lucrative loan origination business has dropped off?
He believes they might survive if they have an equity infusion of seven or so billion $$$.
http://www.bloomberg.com/index_americas.html
“2) how are they making a profit if their once lucrative loan origination business has dropped off?”
According to my main mortgage broker, Countrywide is pricing competitively, and originating a lot of loans. By “a lot” he means more than their usual share within the marketplace.