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    • Sun Mar 9th 19:27 PM | Rating: 0 0
      Commented on:
      FBI Investigating Countrywide
      Barry, your increasing shrillness hurts my ears. How's that S&P 8,000 call working out for you and your clients? Lol!

      I really am so disgusted with how many idiots continue to press this communist attack on private sector companies and ceos. The BK problems with CFC are because they couldn't roll commercial paper or MTNs and they can't sell the assets pledged against that debt except for at distressed sale levels. So they sold to BofA.

      Now, if Mozilo knew all this was going to happen as he sold stock in 2004, 2005 and 2006, aside from being a psychic, don't you think he would have rolled out the financing for the company to later durations? Hmmm. After all, the company had no problem raising cash during all that period.

      [Comment censored for offensive language. Commenter put on watch]
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    • Thu Mar 6th 09:23 AM | Rating: 0 0
      Commented on:
      Will BofA Really Buy Countrywide?
      "You can build your own national mortgage network! In fact, you already have one! Why do you need this? What are you thinking?"

      Uh, gee dude. I guess you have absolutely no idea how expensive that proposition is. BOA has lagged the mortgage market ever since they moved away from the more expensive dedicated mortgage rep model under the assumption they can do it all cheaper through the huge branch network. Sure they could build it themselves, but hiring reps, underwriters, processors, managers and building systems and processing centers all take money. Why not buy the largest mortgage distribution organization in the world, plus millions of existing customer base for a song? This thing will be generating huge returns for BOA by 2010.

      Your argument makes some sense if Lewis were paying $20 a share, but at the deal price of ~$7 it is simply a demonstration of the kind of thinking that will ensure you never make it to the big boy chair!
      View article »
    • Thu Jan 3rd 09:45 AM | Rating: 0 0
      Commented on:
      Countrywide's Call For Increased Mortgage Limits Must Be Ignored
      There were many excesses throughout this finance based growth cycle. Countrywide participated in many of the mortgage related excesses, but there are others. For one, the explosion in personal investing sites to include publishing lots of prose written by complete and utter incompetents. This article is a great example of this excess.

      Consider, the mortgage excesses had many aspects and many players to blame. However, the "crisis" we are working through is entirely due to non Agency collateral. Wall St, rating agencies, lenders (including Countrywide), investors, borrowers, brokers, etc. all have culpability in creating the excesses we are working through. But the Fannie/Freddie securities market is performing just fine. No investors are losing money there. Banks are not writing down the value of Fannie guaranteed loans. So, it makes zero sense to place blame on the increased loan limits used by the Agencies over the years.

      Second, millions of taxpayers in California, Florida, New York, Chicago, etc. are now stuck with materially higher financing rates and larger downpayment requirements just because they live and work in higher property value locations than, say, their counterparts in Charlotte or Dallas. To the extent the Agencies benefit from an implicit US Govt guarantee (and they do!) these taxpayers are not getting any benefit due to the obvious flaws of using a national average price for setting the limits that Fannie and Freddie operate with.

      Finally, the author states that CEO Mozilo is looking for govt help "only now". A journalist would have to be lazy or stupid to make such a statement. Even a cursory level of research would uncover that Mozilo has been one of the Agencies strongest and most consistent supporters. All throughout the boom, when Wall St continuously tried to kill them off (i.e. eliminate their competition) by arguing they were not needed, Mozilo came to their defense arguing they were needed for periods of stress. I know this because I listened and, at the time, disagreed with him. I was wrong and Mozilo was insightful and correct. This author, however, lacks even a basic understanding of the mortgage market and seekingalpha editors should be ashamed for publishing his tripe!
      View article »
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