Countrywide borrows 11.5 Billion, may declare bankruptcy

[WA_Vol]

Countrywide the largest Mortgage lender in the U.S is on the verge of bankruptcy. I guess Bush is too concerned about the people in Iraq to address this issue.

Friedman, Billings, Ramsey Group Inc. said Thursday a continued liquidity crunch for more than three months could send Countrywide into bankruptcy.

Countrywide Borrows $11.5B From 40 Banks

 

[CSpindizzy]

HomeBanc did last week. How many more will follow?

 

[allvol123]

And what will Bush do?

 

[CSpindizzy]

See press conference last week...

 

[allvol123]

Why? What was said in it?

 

[volinbham]

And what will Bush do?

yes - what should the president do? What are the options he could consider?

 

[CSpindizzy]

I love the prodding, provoking questions. What is your answer?

 

[allvol123]

Mine was an honest question. No prodding.

 

[WA_Vol]

yes - what should the president do? What are the options he could consider?

Print more money. Thats his solution to all fisical problems.

 

[CSpindizzy]

They're already pumping billions into the system worldwide. Perhaps offer these empty houses to illegal aliens....

 

[allvol123]

They're already pumping billions into the system worldwide. Perhaps offer these empty houses to illegal aliens....

Nope. Oklavol has already stated that he prefer that Bush not worry about people from other countries.

 

[CSpindizzy]

OK. Then homeless. Edwards will be proposing this soon I'm sure. You'll see "3/2.5 and an acre" as his new plan.

 

[volinbham]

I love the prodding, provoking questions. What is your answer?

My answer is that there is very little (if anything) he could or should do and the suggestion that his pre-occupation with Iraq is preventing him from doing something is unfounded.

It was implied that he should do something about it so I asked what that might be.

 

[volinbham]

They're already pumping billions into the system worldwide. Perhaps offer these empty houses to illegal aliens....

Bush is not doing that - the Fed is.

 

[CSpindizzy]

Bush is not doing that - the Fed is.

I know. I never said Bush was. And actually it's not just the Fed. It's several central banks worldwide.

 

[volinbham]

I'm just tying it back to what Bush should do about it.

 

[volinbham]

I know. I never said Bush was. And actually it's not just the Fed. It's several central banks worldwide.

I never said it was just the Fed :neener2:

 

[CSpindizzy]

One could argue that Bush does act through the Fed as well.

 

[WA_Vol]

I'm just tying it back to what Bush should do about it.

Lenders are making bad loans, and banks are lending the lenders the money to do it. If the Federal Govt is guaranteeing the solvency of banks who are making these loans, I think he better do something more then print money.

Unless you want to see the Candadian Dollar worth more then the U.S. dollar in our lifetime.

 

[volinbham]

I don't think these mortgage lenders are federally backed.

The reality is that there is very little that he could do and as important, very little he should do.

The Fed has been reluctant to bail the market out and has only done enough to keep liquidity in the credit markets.

 

[CSpindizzy]

Bring on those tax cuts to spur growth.

 

[WA_Vol]

I don't think these mortgage lenders are federally backed.

The reality is that there is very little that he could do and as important, very little he should do.

The Fed has been reluctant to bail the market out and has only done enough to keep liquidity in the credit markets.

Countrywide just borrowed 11.5 billion from banks. The solvency of Banks in this country is Federally guaranteed.

 

[BigPapaVol]

Countrywide just borrowed 11.5 billion from banks. The solvency of Banks in this country is Federally guaranteed.

Countrywide borrows heavily from banks, but more often from the institutional investers out there buying CDOs. The Fed allows banks to independently underwrite loans based upon fed guidelines. Feds follow up to ensure that any lenders that are FDIC insured are abiding by its guidelines and policies. Otherwise, we'd have a socialist model banking system, which has proven disastrous over and over again.

 

[g8terh8ter_eric]

Traditional Loans are not the problem here, its the ARM's with the balloons attached. If most everyone would stay with a traditional loan instead of trying to bite off more than they could chew they would be ok. So if you have a choice in taking a loan (ONLY IF YOU ARE READY) take a traditional loan vs. these crappy ARM's that have balloons that will burst on you after 5 years. The only thing that will affect Country Wide is profitability because they don't make much on traditional loans. Country Wide is fine, they won't declare bankruptcy.

 

[dantheman617]

I guess Bush is at fault for everything.