I see that recurrent post on Yahoo message board. The simplest way to explain this event today, which declined more than 3% on heavy volume, is to put into light that Countrywide is heavily dependent on home builders for many of their subprime and prime Alt-A loans. The Lennar earnings today, and the honest assessment by their CEO shows that subprime IS spreading to other parts of the economy. While spring is considered a "buying" season for new and used homes, it is clear that demand for housing has dried up and will only get worse. Countrywide's leverage to the new home market will also mean that they will have to come clean about their prospects. The CEO has been on a major campaign to prop up this stock while pointing fingers at other subprime lenders. The efforts by Mr. Mozilo to separate Countrywide from subprime was one big propaganda to prop up his company's shares while he is selling hand over fist.
I say, please Mr.Mozilo, before it gets really out of hand, come clean. I sense a scandle brewing here.
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3 comments:
I am also in the same field lile you.First thing I do is try to read your blog.They are very analytical and thoght provoking.I agree about black stone ipo.
i think things are getting to a head.
We should see lot's of cleaNSING FROM NOW ONWARDS.
tHERE IS TOO MUCH LIQUIDITY IN THE SYSTEM WHICH IS COMING TO AN END.
KEEP UP YOUR GOOD WORK.
LOT'S OF PEOPLE READ YOUR BLOG BUT MAY NOT POST A COMMENT.
RSMITH786786BLOGSPOT .COM
You're not going to get him to come clean until he has to announce earnings.
THEN you'll see it......
I'm short.....
Thank you for the kind words. I try to be as accurate as possible. I also read your blog as well on a daily basis. Let's continue to provide a "service" for the traders that seek the truth and the other point of view on things that the Wall Street does not provide.
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