Posted on 08/15/2007 12:32:32 PM PDT by Hydroshock
NEW YORK (Reuters) -- Shares of Countrywide Financial Corp. dropped as much as 19 percent Wednesday on market rumors the mortgage company has been unable to raise money from the commercial paper market.
Countrywide officials were not immediately available for comment.
"People are buying Countrywide puts very aggressively on Wednesday off of rumors that the commercial paper market could be closed to them," said William Lefkowitz, options strategist at brokerage firm vFinance Investments.
Puts are options that allow an investor to sell a stock at a preset price by a certain date.
Another trader attributed the drop in the stock to the rumor.
Countrywide (down $4.40 to $20.06, Charts, Fortune 500) shares dipped 17 percent in late session trading on the New York Stock Exchange
(Excerpt) Read more at money.cnn.com ...
From what I have read the big banks have inserted approximately $350 billion in the US and Europe. Japan has also dived up a few billion.
Sure would like to know what the insider trading did in advance.
It has only just begun.
“We here at Countrywide can put you into the home of your dreams for No MONEY DOWN....that’s right...NO MONEY DOWN”
I’m not an economist but, is leading money at sub-prime rates a good idea. I’ve often thought NOT.
They cut their loses, they always do.
I read a couple instances of people with 10% down payments getting their interest rates jacked to secure the loans, and they bailed. We will be back to 20% down and 8% interest by the end of the week.
“The Country Wide honchos could care less. They’ve been pulling big bucks out of that pig for years. They got while the getting was good”
Exactly! I’m so tired of libertarian cult-of-the-CEO groupies talking here about how these honchos are patriotic, working for everybody’s best interest, etc. Thank you for refreshing truth.
The liquidity issue is a concern for them; if people panic.
Exactly, they made their money and probably have most of it offshore.
Sorry, my fault. The two companies I worked for before leaving to stay home with my kids (because it was actually costing me more money to work than to not work) were Countrywide and American Home Mortgage. AHM is now bankrupt and CW is on its way. For those wishing to take advantage of this trend and sell short, the previous company I worked for was Bank of America. Happy investing!
The Mighty Terpin (Corporation Killer)
i talked to a guy the other day who was almost paid off on his mortgage then refied through country wide... they told him it was a 40 year loan (it was 30 years with a balloon payment) ... he’s still trying to bail out but they want one years interest at 1616 interest a month as a prepayment penalty which would put him over what his home is worth...
“flip this house”
Divorce? Bankruptcy? Low credit? No credit?
Crack addict? Democrat?
No problem! Put down that pipe, plug in your brain,
step right up, sign here, and here . . . and here.
I hope not, my nortgage is owned by BofA. To much of a pain to get bought out.
I can second that thought. I used to work for a guy who sits on their board - he was very shady.
Stock Markets are Down Historically Inflation is way up. Medical costs are higher, fuel is higher and food is at record highs. Despite what Bernanke says. The Fed lies. Watch the Fed invent another $ 100 billion out of thin air and burn it up to support the markets again. Weimar Reublic all over again. 'Nuff said.
They call you every day, too? I thought it was just me!
“Weimar Reublic all over again”
So my 1923 million mark note will be good again?
(I paid 75 cents for it. way too much)
There are too many TV shows and seminars about stock market gambling plans. There are going to be some very unhappy day traders when Countrywide shows them that they are solid with very reliable loan portfolios. This is not much different from last years losers in the oil and gas gamble. The problem is that the gamblers are running up some costs for the average investor and the average consumer, before the bottom drops out for the gambler. Oil should be $45 or less and the loan industry is still solid.
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