Countrywide Receives $12 Billion in Credit - Market Up

Article Submitted by: Sam Cass
Taxes and Estate Planning


Countrywide announced today it had received $12 billion in credit financing, helping it avert any kind of liquidity crunch. The market responded positively.

 

Submitted: Sep 13, 2007    Views: 289    Comments: 3    Likes: 5   


Countrywide announced today it had received $12 billion in credit financing, helping it avert any kind of liquidity crunch.  The market responded positively. 

"It appears that this credit crunch may not be as bad as some people thought," said Charles Norton, principal and portfolio manager at GNICapital.  I don't know who Mr. Norton is and haven't heard of GNICapital but he echoes a sentiment I've made earlier.  Namely, that things were not as bad the media was saying.

Of course, I do believe that there is a lot of pain happening to individuals and quite a few will lose their homes.  That's very unfortunate.  But I still don't think it's going to lead to the next depression.

All markets were up on this news as well as advanced by GM and McDonald's, which hit an all-time high.

We continue with our Fed watch.




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Comments Received:

JTerranian
(Unregistered)

Wall Street seems willing to do whatever it takes to bail out Countrywide. They aren't investing in this because they think it is a good investment. They must have decided that they need it to survive. Either than or Mozilo has dirt on someone important.

Posted: Sep 13, 2007

seaver

We are still in the early innings. Countrywide and the rest of the mortgage lenders have several more legs down to contend with. This isn't a hiccup in real estate values, it is going to be a pronounced resetting to levels closer to those from 7 years ago than to 1 year ago.

Posted: Sep 17, 2007

William Li
William_Li

Countrywide is about due for another big fall. Stay away.

Posted: Oct 2, 2007



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