the_Bird

The Real Story on Countrywide: Fed Behind the Deal?

While not denying the possibilty/probabilty that information on the deal was leaked, it also didn't take a genius to realize that there was the potential for a HUGE short-squeeze on CFC. Even with all of the problems, the sector looked massively oversold, and anyone buying calls stood to make a fat, quick profit on exactly the kind of bounce that occured. Bear market rallies are the most ferocious, mostly because of the short-covering.