BillCust

Miracle: Bush To Part The Bankrupt Sea

So assuming 150k loan balance, about 80k people will be 12 Billion US$ of new mortgages per annum. The troubled portion of the subprime (with high LTV and at least 50% payment increase) within a year is 500 Billion US$.

Plus the usual finelining like no 95LTV for this and that borrower, definitely only owner occ- and primary home, etc will be enough to just guarantee that less than the meager $12 B "bailout" will be deployable. Plus the other filter that they're likely to use: geography , loan limit, and income, which will cut out the FL, CA, NV, MA, and AZ loans making up 90+% of the blowups right now.

This Horowitz guy isn't looking out for his investors.

Bank of America Invests $2B in Countrywide: Who Wins?

In my opinion BAC will most likely make very little money in return for a sound guarantee of losing none of its previous investments with Cwide. The 30% capacity is about right: I calculated that at 30% current rate of "burn" that combined 13B might last them 4 weeks. The question is since they have 65,000 people would they rather keep 100% resources for 30% utilization, or a really massive workforce adjustment is in the works? Keep in mind the US adds a net 100k job monthly these days, so that number if done in a day is huge. One last thing, don't you all see the irony of it all? Cwide gets a subprime loan from BAC. Hahahaha.