MOST IMPORTANT POST EVER

NEW -> Contingent Buyer Assistance Program
Janet





These "loans", some short-term other long-term, are more than likely secured through assets such as buildings, performing loans held on their books, and even IP. Although I would bet that some loans are very secured at all the banks are charging them a pretty high rate.





One other thing to keep in mind is that Countrywide also services a ton of loans, I think I read somewhere over a couple hundred billion, therefore the banks are probably assuming that even if it can't go out and broker loans b/c of the secondary market they will still be able to service loans which, even if they go into bankruptcy, will provide them, the lenders, with a means to recover their funds.
 
Check out the news on CW at <a href="http://www.housingwire.com/2007/08/16/countrywide-taps-115-billion-in-liquidity-accelerates-move-to-thrift/">housingwire</a>. They are accelerating the change in their business model to a thrift. This has been a long time goal because the asset to debt level is more lenient than how they are structured now. They have a ton of loans that they can't sell and that is why they are going to the conforming route like everyone else. If they can transition to thrift fast enough they should be fine. If they can't then there will be problems.
 
<p>LM writes<em>: "When you look at the business model, it's amazing that this company got this big. They provide no tangible goods or services. Their entire business is dependent upon delivering other people's money to borrowers. Its really amazing if you sit down and think about it. Every loan they funded was on a credit line from a brokerage firm like Credit Suisse, Lehman Bros, Bear Stearns, or Deutsche Bank."</em></p>

<p>When you look at the business model, it's amazing that the US economy got this big. We provide few tangible goods or services. Our entire business is dependent upon delivering other people's money to borrowers. Most of our economic growth was fueled by a credit line from the Chinese.</p>

<p>(your post reminded me of the broad US economy)</p>
 
Would you make a loan knowing for sure you had to liquidate your collateral?
 
good point. I've always said that America is full of salespeople. We sell other people's products, and consume them as well. A giant black hole of consumption, if you will.
 
Janet - If you are Angelo Mozillo you can exercise options and sell your stock every day you stay in business, but you can only exercise 8,000 per day, so you better keep those doors open.
 
<p>"Most of our economic growth was fueled by a credit line from the Chinese."</p>

<p>One may argue the present war is / was financed by the Chinese too. </p>

<p>Try to fathom the expense of this war on our economy had there not been so much liquidity in the markets!</p>
 
<p>Word is leaking that Accredited may have stopped funding today. Not sure if it is related to the wrangling with <a href="http://www.marketwatch.com/news/story/lone-star-counters-accredited-home/story.aspx?guid=%7B9AF45EDA%2D9495%2D43CD%2DB1C2%2D29B6FA24CD09%7D&dist=TQP_Mod_mktwN">Lone Star</a>.</p>

<p>SCHB</p>
 
<p>Wow, shutting down at a cost of $860 Million Dollars is better than continuing. </p>

<p><a href="http://news.yahoo.com/s/ap/20070820/ap_on_bi_ge/capital_one_financial_wholesale_mortgages_6;_ylt=AkGoe62kJ8uWmr_66psWrOUE1vAI">http://news.yahoo.com/s/ap/20070820/ap_on_bi_ge/capital_one_financial_wholesale_mortgages_6;_ylt=AkGoe62kJ8uWmr_66psWrOUE1vAI</a></p>
 
I just wanted to pat Lendingmaestro on the back for his prediction. .





<a href="http://labusinessjournal.com/article.asp?aid=28792841.407783.1523912.8322352.7165323.817">labusinessjournal.com/article.asp</a>





“Everything was great until about a month ago. Then, on one day – Thursday, Aug. 9 – everything changed as lenders shot up rates on jumbo loans to 9 percent and further tightened guidelines,” said Syd Leibovitch, owner of Beverly Hills-based Rodeo Realty, which mostly deals in homes worth more than $2 million.
 
<p>6 months into the coming depression, we may look back and say..."hmm it appears this was an important post after all!"</p>

<p>Many people contributed to this thread, thanks for all the input!!!</p>
 
<p>Those rabbits are partially domesticated</p>

<p>You can practically tackle them. For the first few months, there will be plenty of gullible animals easily caught. Things will take a turn for the worse when they are eliminated and the ones that have the mutant "wary of out of work mortage lender" gene are left and their offspring begin to dominate the population.</p>

<p>SCHB</p>
 
<p><a href="http://www.bowhunting.net/susieq/rabbit.html">Bunny recipes.</a></p>

<p>I would like to note for the record, however, that the title "rabbit coq au vin" makes no sense. There's no chicken in the recipe. It should be titled "Lapin au vin."</p>
 
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