Posted on 08/24/2007 11:03:29 AM PDT by Hydroshock
I reported what was said in the post.
I’ve seen at lest two interviews. He did not sound enthusiastic about the future. In the last week or so, Countrywide Mortgage has borrowed the entire $11.5 million credit line available; and just got a $2 Billion infusion from BoA. You don’t think they have serious problems?
Countrywide Mortgage has huge overhead expenses in staff and brick and mortor that they can no longer support based on the level of its current business. BK is the only viable option to avoid get out of the leases on all their locations, or the ones they want to close.
It’s nice to have proof instead of just claims.
I’ve been trying to tell folks, the credit crunch is going to get UGLY, very very UGLY and take more down than just mortgage companies.
I don’t think $2 Billion is going to amount to a hill of beans for CW... they tapped over 11 Billion in cash just to stay afloat a few weeks ago, another $2 won’t matter much if credit crunch continues.... when your major cash raising asset is paper, and no one is willing to buy it.. you don’t stay in business long.
If paper remains an unsellable commodity, CW is toast, and so are a lot of other industries.
Check this link:
http://finance.yahoo.com/q/it?s=CFC
He’s selling like crazy. At least he is doing it openly, but I am surprised this is not being reported.
Proof takes research.
Those who make claims should do that research.
I have been berated by you Petronski and others for think and post that he economy is in trouble. Let me ask you one question what makes you think everything is rosey and will continue to be so?
I did not make that claim. You are building a strawman of a false dichotomy.
CW id DOA unless mortgage backed paper can very rapidly find buyers they are done.
When your whole business model is based on being able to sell your paper for a profit to infuse capital into the business to get the next round of paper, it doesn’t take long to collapse when the paper is no longer worth anything.
As you stated they tapped 11.5 Billion what? a week or two ago? With the game plan of using that to pay off real assets to sell to raise more $$.. IE pay of real estate holdings to sell to make $$.. well guess what? Real Estate doesn’t sell fast... so thats a lousy short term survival plan.... and another $2 Billion won’t keep them alive long.
If mtg backed paper can’t be sold, CW will be bankrupt very shortly... and it doesn’t look like this commodity is going to be worthy anything in the near future.
THis $2 Billion is symbolic at best, it won’t save CW... If the credit crunch remains, they are done, and done within a quarter.
If you do not think things are going great then why comment on my posts?
Things are neither great nor as bad as you paint them to be. That’s the false dichotomy.
2 things:
1. I give CW 6 to 9 months unless tehy can start to sale their paper in a big way.
2. I would not be suprised if BofA did this to get a hold of a lot of their profolio at fire sale prices if they can’t.
I think things are gettign worse and will continue to do so. I look at the 2 trillion dollars of arms about to reset in the next 24 months like a hammer waiting to fall.
Obviously you do. Or at least you hope so.
I give then that because of the 11.5 billion credit line. I thank that can keep them going for a little while.
Fear, certainly not hope.
I have not berated you, or did you mistype?
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