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Will Countrywide go bankrupt?
Last Post 23 Jan 2008 10:01 AM by jim. 4 Replies.
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Douglas Ingram
Posts:26
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09 Jan 2008 08:00 PM  

Just curious if any of you mortgage brokers have any opinions regarding the financial situation of Countrywide. Some street speculation that they may go bankrupt.


Ivan Tchakarov
Posts:38
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11 Jan 2008 01:44 PM  
It seems Bank of America bailed them out today.

I don't think they would have allowed them to go bankrupt. Just imagine all the mess and chaos that would have created. We really don't need any more shocks for the real estate market:)
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jim
Posts:5
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13 Jan 2008 10:15 PM  

 

Whats your spin on the Fed's talked about cut in the primp interest rate. What effect do you project it will have if indeed they cut it by half point? Will this be enough to pull the stock market back up and head off a recession?


Ivan Tchakarov
Posts:38
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21 Jan 2008 10:08 AM  
I think they are going to cut the rate by half a point. It should help some but will not solve the real estate woes nor the recession fears.

The problem is not the rates - the are near historic lows. The mortgage standards have tighten up tremendously thus taking around 20% of the buyers out of the market. Now, this is a welcomed change because the lax credit standards are the primary reason we are in this mess right now. It will just take some time for the market to absorb the shock.
Ivan Learn more
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jim
Posts:5
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23 Jan 2008 10:01 AM  

Well I guess we didn't see that one coming. Kodo's to the fed. At least they are trying to stop the bleeding. Tax cuts when implemented will also have some effect although it wont take place right away. The ecomony will recover it just may take a while.

 

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