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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
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To: Hydroshock
We saw part of the bail out yesterday. The ECB and the Fed stepped in and flooded the market with money. Maintaining target rates isn't a bail out.
21
posted on
08/10/2007 6:22:50 AM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Moonman62
Yes it is. They should have let the market sort itself out.
22
posted on
08/10/2007 6:25:59 AM PDT
by
Hydroshock
("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
To: Moonman62
Time to buy calls on the cheap........
Fed fund futures point to emergency Fed rate cut
By Steve Gelsi
Last Update: 7:56 AM ET Aug 10, 2007
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, Merrill Lynch analyst Joseph B. Shatz said in a note to clients late Thursday. Fed Funds futures appear to be pricing in a substantial risk that the Fed may make the move after a series of recent events, including a move by the European Central Bank to inject $130 billion into banks. On Friday, the European Central Bank injected 61 billion euros ($84 billion) in a tender auction.
To: Malacoda
Im guessing nothing, if you have a fixed-rate mortgage. That was my guess, but I figured I would ask anyway.
24
posted on
08/10/2007 6:29:07 AM PDT
by
Gabz
(Don't tell my mom I'm a lobbyist, she thinks I'm a piano player in a whorehouse)
To: stefanbatory
Im guessing nothing, if you have a fixed-rate mortgage. Darn :)
25
posted on
08/10/2007 6:30:45 AM PDT
by
Gabz
(Don't tell my mom I'm a lobbyist, she thinks I'm a piano player in a whorehouse)
To: Hydroshock
This is the "calm" before the real storm.
The next year will be a wild one in the financial markets.
This may be the first time ever that drops in home values actually cause a deep recession.
A lot of folks around here are still in deep denial, but they better start paying attention--resetting ARMS (based on higher interest rates which reflect the perceived risk in the mortgage market) in the next few months will affect a lot of middle class folks with decent credit, not just the subprime market everyone is discussing.
Higher interest rates will also keep potential financially qualified buyers on the sidelines--delaying their purchases in the hope that rates come down and sellers lower their unreasonable expectations.
26
posted on
08/10/2007 6:30:47 AM PDT
by
cgbg
(Hillary's mob has plans for our liberties--hanging fruit.)
To: Moonman62
Yes they meet the target rate but had to flood the market to do it.
To: Orange1998
"The game is played over and over and the music never stops."
Kudos! Just the tunes and verses change. A+++
28
posted on
08/10/2007 6:32:08 AM PDT
by
BlabItGrabIt
(Get Away from the Blind Side of Life--S.R. Vaughn)
To: econjack
What you fail to see is that problems like this spread beyond the companies that make bad decisions. That makes it a problem of the government's concern.
And the government didn't bail out the S&L's. We covered that yesterday. The government was the insurer of S&L deposits. The government had to provide money to its insurance corporation.
29
posted on
08/10/2007 6:32:48 AM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: econjack
Right, we don’t need any more of the “privatize the profit, socialize the risk” nonsense, that’s fascism. They took the chance let them take the lumps.
30
posted on
08/10/2007 6:33:34 AM PDT
by
Hawk1976
(747 superliners crashed into the WTC on 9/11, Steny Hoyer told me so on 8/7/07.)
To: Hawk1976
The government just prints more money.
To: cgbg
....could be but I would inject two thoughts.....
1. if recession does loom the Feds are gonna lower interest rates big time.....
2. once all this shakes out, the market will price in the future credit crap and they psychology won’t play out..
.....just like in Feb when market lost 400 points on the China market loss......after that one time, it never even blushed when China went down.....the market hates uncertainty so once it has seen it before, it usually is not phased unless fundamentals are weak.....
To: Malacoda
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.
33
posted on
08/10/2007 6:38:33 AM PDT
by
RockinRight
(Fred's Campaign: A hell of an opening, coast for a while, and then have a hell of a close.)
To: cgbg
You are grossly overstating the situation. The vast majority of mortgages outstanding are fixed-rate loans. Countrywide has enough cash right now to take defaults on every single one of the ARMs it has, and that isn't going to happen. Most other lenders didn't get into the ARMs or subprime loans as heavily as Countrywide did, either. Countrywide still does the bulk of its business in Fannie Mae/Freddie Mac loans and those agencies are still buying everything they can.
People REALLY need to calm down about this situation. Investors have temporarily pulled back from mortgage-backed securities but they will be back.
34
posted on
08/10/2007 6:38:54 AM PDT
by
Dems_R_Losers
(Thanks anyway, Nancy, but we already have a Commander-in-Chief!)
To: cgbg
I agree...Going to get ugly soon...Hate to sound negative/pessimistic but the facts are we’ve been extremely spoiled for sometime now....The writing is on the wall as they say...The economic policies that the congress(mob) has implented years ago are starting to come to roost...Just look at the situation with China for example...The last 5-6 years anyone with a pulse got a mortgage...Somewhere down the line someone(us) got to pay for it, just the way it is I guess...
To: Orange1998
Yes, that could goose the market. And better yet, Bernanke and Paulson will have to choke on their words that the subprime mess was contained.
36
posted on
08/10/2007 6:44:12 AM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Dems_R_Losers
The only one panicking is the ones holding the paper. Liquidity has temp dry up.
To: cgbg
“-resetting ARMS (based on higher interest rates which reflect the perceived risk in the mortgage market) in the next few months will affect a lot of middle class folks with decent credit, not just the subprime market everyone is discussing.”
Most of those people will be able to refinance into decent rates.
Some are doing it right now, others are waiting.
38
posted on
08/10/2007 6:47:19 AM PDT
by
HereInTheHeartland
(Never bring a knife to a gun fight, or a Democrat to do serious work...)
To: RockinRight
You’re a voice a reason buddy! ;^)
39
posted on
08/10/2007 6:47:58 AM PDT
by
DCPatriot
("It aint what you don't know that kills you. It's what you know that aint so" Theodore Sturgeon))
To: Hydroshock
filing that mortgage market disruption could hurt the company's financial condition In the real world that can be translated as, if someone don't buy our worthless paper we are going broke!
40
posted on
08/10/2007 6:48:20 AM PDT
by
org.whodat
(What's the difference between a Democrat and a republican????)
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