Some more chart porn for you Countrywide (CCF) fans: Note the outsized-risk Countrywide was taking as insiders were dumping shares worth $100s of millions of dollars . . .
Countrywide Led Mortgage Cos in Risk Taking
November 13, 2007 2:30pm by Barry Ritholtz
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Barry,
Todays a big head-fake in the market, subprime and so-so-prime mortgage-backed securities are toast.
Todays good-news is a head-fake and that’s what worries me.
Mozillo claimed the other day that they had to make all those loans because they were forced to by ethnic minority groups or something.
>>>Mozillo claimed the other day that they had to make all those loans because they were forced to by ethnic minority groups or something.<<< Ah, so that's why he has such a deep, dark tan! To align with his ethnic minority customers!
Offtopic:
Here’s a first look at the gPhone
http://bits.blogs.nytimes.com/2007/11/12/a-first-look-at-the-google-phone/index.html?ref=technology
Is this going to be to the i-Phone what Windows was to the Mac?
Hardware independent
Open to third party developers
Roughly the same capability
A lot less expensive
A company with deep pockets
We should start seeing this play out in the stock market really soon…
Here’s what I was thinking of before:
“At a conference sponsored by the Milken Institute about two weeks ago, for example, (Mozilo) explained that borrowers forced lenders like Countrywide to lower their mortgage standards. The industry faced special pressure from minority advocates to help people buy homes, he said. Now, the government must help by increasing loan limits at government-sponsored enterprises like Fannie Mae and Freddie Mac, he added.”
http://www.nytimes.com/2007/11/11/business/11angelo.html?_r=1&ref=business&pagewanted=all&oref=slogin
The symbol for Countrywide is CFC.
The buzz on various boards is that the FED is going to do a surprise 50bp rate cut and it is scheduled for Thursday afternoon! Gold and the Dollar don’t seem to agree today, so I guess we will have to wait and see.
Tracking a single loan from IndyMac about 2002 to a single mom who lived with her mother and father both on SS and her brother on SSI and his wife. the family had an adequate income to make the payments however they did understand money management and all parties had been through previous bankruptcies.
The original loan from a company called Investment ?? LLC was apparently financed by IndyMac for 101k and some change so at foreclosure Indymac transfered to property to Deutse Bank and Deutse bank sold it through a realtor on Dallas named Virginia Cook at a price of 39k. Probably 25k would have cleaned the place up adequately and the buyer repaired all the damages and sold the place for 89k with $500. down at 7% and some change. Since then there was another repair needed which cost about 5k and I do not know if the seller who was another LLC paid for that or not.
There was probably a 75% write down in the
foreclosure sale with probably three different LLCs or banks profiting from the write off of say 75k and the subsequent profit of about 20k or so from the final seller.
It appears to me to be a lot of people errh excuse me chiselers playing fast and loose with assets since obviously cash is so cheap and easy to obtain by those in the know.
I have one question to Congress. Who the hell is in charge up there in DC?
bashing the market and at the same time going long penny stocks(miis; they don’t even answr their phone)) could be hazardous to your career….
With 80% paying the bare minimum on these monstrosities and prices plummeting I’m failing to see how these securities can be worth more than about 10% of their mark to model values.
Wouldn’t that amount to a loss of $63 billion in one year for CFC? Just on option ARMS? I must be vastly over simplifying this.