Countrywide Loses Most Since 1987 on Funding Concern (-28%)

Countrywide Loses Most Since 1987 on Funding Concern (-28%)

www.bloomberg.com

Jan. 8 (Bloomberg) -- Countrywide Financial Corp. dropped the most since Black Monday in October 1987 in New York trading on speculation that it needs cash to continue operating its mortgage business.

``There's some sort of rumor that they would go under, but it's purely a rumor,'' said Thomas Garcia, head of trading at Thornburg Investment Management, which oversees about

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US Recessions "Has Arrived"--Merrill Lynch

Another bad day for the market..

I don't think we are gearing up for stock market crash (Even thou it shows signs) but we will experience a large correction.

CNBC have defined this as; (proving my point)

The Dow Jones Industrial Average and S&P 500 moved back into "correction" territory, having fallen more than 10% from their recent highs for the second time in recent months.

Plus, more worrying, there is no signs of any "rally" or bottom. Investors are too nervous.

www.bloomberg.com
(visit the link for the full news article)

Well I guess now we know that they were just trying to keep things going through the holidays. Remember these threads from September?

www.abovetopsecret.com...

www.abovetopsecret.com...

Looks like things aren't as swell as they were saying back then.

I've been away for a couple of days, and find it odd that no one mentions that countrywide was just bought by Bank of America. The news (more appropriately leak) almost coinceded with a Bernanke speech. It was followed by rumors of a Washington Mutual aquisition by JPMorgan(Later confirmed that they were in "Very Preliminary" talks). CFC and WaMu are probably the two biggest mortgage lender involved in the subprime mess. I find it odd (well not really) that the leak appears to come from DC as opposed to Durham (BoA home office i think) or Cali (Countrywide home office). My thesis, BoA's arm was twisted to acquire countrywide by the PTB because CFC is "to big to fail".

This thread was started based on the fact that CFC had one of the largest percentage drops in its history based on bankruptcy rumors. Less than 72 hours later it is being acquired by Bank of America. I firmly believe that if BoA had not stepped in CFC would be declaring bankruptcy. Watch WaMu and JPM closely.

Amigos and MODs if you guys want a conspiracy that can be proved on here look at what's going on in finance. SIVs, leaks of pending FED action, funny economic data reporting, and probably ten other issues just bubbling in the markets and economy. Start an economic issues forum. It's out there, proveable, and maybe interesting enough to justify its own forum.

Yeah, it's the biggest conspiracy to ever be REAL, The Federal Reserve. That's why no one will acknowledge it (except for a few here and elsewhere). Most just haven't cared because it 'didn't' affect them'. Maybe this will get their attention, albeit too late.

Bank of America had already put money in Countrywide. They are merely trying to put their finger in the dike, or artery, or whatever...... No need to discuss further, soon everyone will know