Countrywide’s CEO sees housing-led recession

[brooklynite]

Source: MSNBC

Calling the current credit crunch “one of the greatest panics I've ever seen in 55 years of financial services,” Countrywide Financial CEO Angelo Mozilo said Thursday that the ongoing housing slump will likely push the U.S. economy into recession.

The financial markets took some solace from news that the largest U.S. mortgage lender had taken steps to shore up its finances as it struggles with a liquidity crunch with an infusion of $2 billion from Bank of America to help stabilize the company.

But Countrywide still faces longer-term problems as the financial storm rocking the credit markets continues. Mozilo said the turmoil in the mortgage market and the ongoing housing slump are far from over.

Read more: http://www.msnbc.msn.com/id/20405745/

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All things considered, not a very "interesting" story.....

[Eurobabe]

1. No shit Sherlock

Doesn't take a genius to figure this out, although many are in denial. :eyes:

[cliss]

2. Far from over

is right. There is a storm on the horizon. Black clouds. The first raindrops have just started falling.

Now when the CEO of the largest mortgage financer in the country talks, people better listen. I see a lot of denial right now, "whew WELL I'm glad that's over with", "Thank goodness that was scary but it's over now".

Amazingly, I still hear of people buying houses, really big upscale ones. Building is going on.

[LibDemAlways]

3. And where was Mr. Countrywide CEO a

couple of years ago when his company was lending millions to people who couldn't afford even a modest increase in their adjustable rates?

This was so f'ing predictable. What a moron.

[Selatius]

4. They didn't give a shit. As long as customers paid the mortgage, they gave anybody a loan.

When you play loose with your money, your firm dies. The responsibility is on the lender to ensure that the loan given is appropriate for the customer's financial situation.

I wouldn't give a fucking 250,000 ARM to somebody barely above the poverty line.

But if I was simply interested in short term net income gains, yeah, I would give the person the deal knowing there is a fair chance he or she might default some years down the road, but I don't care about that now because I know the poor sucker's payment on the mortgage shows up immediately at the end of the year as income. I care about this year's earning's report for the board of directors because the fucking shareholders on the board are incessantly pressuring for more short-term profits at the expense of long-term viability.

[janx]

14. My thoughts exactly.

Consider the source.

[Tempest]

5. Mozilo is selling his stock in Countrywide

Just reported on CNBC.

[BeHereNow]

6. Imagine that...

The bumpy ride to hell has just picked up speed.
BHN

[MilesColtrane]

7. I know it's only 1% of their market cap,....

....but I don't like the idea of my bank throwing 2 billion down this rathole that's bound to fail.

Maybe it's time to withdraw, get out the shovel and a pillowcase, and head to the backyard. Might be safer.

[BeHereNow]

8. I dunno about the shovel and pillow case...I think they're planning the Amero switch

So all those dollars will be worthless anyway.
Who knows what to do.
I think we can pretty much count on being fucked
one way or another.

BHN

[MilesColtrane]

9. The Amero hunh?

Damn.

I'll have to convert to metals then.

Maybe I'll buy just one Amero though, just to see George Washington in front of a maple leaf wearing a sombrero.

[mountainvue]

10. No matter what happens,

Angelo will be okay. He's cashed out $250,000,000 of his Countrywide stock this year.

[tabasco]

11. No way! The MBA President said the economy is booming!

The Yale economic genius Professor Bush wouldn't lie to us!!

[joe_sixpack]

12. That's okay

I'm sure it's not going to affect any of his millions. Nice of him to warn the rest of us schmucks about a problem he probably helped create, after of course, he's taken care that he won't be hurt by it.

[Gormy Cuss]

13. If he were being honest, the headline would read

"Countrywide’s CEO accepts responsibility for mortgage lender-led recession"