From Bloomberg:
Aug. 15 (Bloomberg) -- Countrywide Financial Corp., the biggest U.S. mortgage lender, was downgraded to ``sell'' by Merrill Lynch & Co., which raised the possibility of bankruptcy if the company loses access to short-term financing.
``We cannot understate the importance of liquidity,'' Kenneth Bruce, a Merrill analyst in San Francisco, said in a research note today. ``Effective insolvency'' would result should creditors force Countrywide to sell assets at depressed prices or investors lose confidence in its ability to raise cash, he wrote.
``If liquidations occur in a weak market, then it is possible for CFC to go bankrupt,'' said Bruce, who had rated Countrywide a ``buy'' since April 2005, according to data compiled by Bloomberg. Countrywide trades under the ticker CFC.
Wednesday, August 15, 2007
Countrywide Cut by Merrill; Bankruptcy Seen Possible
Posted by Bakersfield Bubble at 8:20 AM
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7 comments:
One of the most expensive REOs in Countrywide's inventory is just a short way across the golf course from the world famous "Dawg Pound." I think it might be worth $450k, big house, big lot, privacy but not on the golf course and no significant views. No matter what though Countrywide isn't going to sell it for less than $1m and a firesale would still fetch $800k or more. There's still greater fools out there just at a lower price point. That's okay, some of these have to sell for $800 and then $600 before I can get mine next one for $450. There's a market clearing force on the way down just like on the way up.
I still see <$100 psf before prices in San Joaquin Valley level out for single family dwellings.
As in every market disruption, good things come to those who wait (i.e. CAN wait -- i.e. have $$ saved!)
Fortunes will be made in the next few years in this market turmoil.
I just hope some of the benefits do not ennure to those who helped cause it!
I'm waiting!
Anyone heard this over on bakersfield blogs?
http://people.bakersfield.com/home/Blog/bakonative/13368/#c_129286
Too funny!
Too True!
Bon Jovi Remax Magic?
http://people.bakersfield.com/home/
Blog/bakonative/13368/#c_129286
truncated it for some reason
Yes - someone sent it to me.
It is very funny!
This John Vaughn character however, I envision as a one trick pony. He is getting a radio show of his own.
I hope its a whole lot better than he came off on Kern Saturday.
And he keeps calling the "straw buyers" innocents. I might buy naive but not innocent!
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