The sky is falling...

[Trailer Park Casanova]

They need $10 bill a month to operate according to CNBC squak box.
They drew down all their credit.
Next they will probably sell off their "Mothers diamond ring", that is, sell off the mortgages they have with customers that have premium credit and aren't upside down on their property value vs note ballance.
I still don't clearly see why they would be in any trouble.
No mention of any sub-prime loans monkey on their back.
Perhaps it's hard to draw cash from banks to, in turn, finance home loans.
I think they'll be fine with time.
This overall mess is going to last longer than people think.

[Freak]

My question is they are banks, who make money by lending.
They have tightened, and will continue to tighten, the qualifying standards. At some pointy (maybe now?), most people will no longer be able to qualify for a loan, based not only on new underwriting criteria, but also LTV values since prices have dropped and equity is gone.
Which means the lenders will not be writing new loans, and thus not making any money (and let alone dealing with all the leftovers).
WTF are they going to do, and when will it get better?
What are you industry peeps being told?
All the boutique lenders will be out of business soon....
Remember that we have been living in unusual times for a long time. Explosive growth we have seen for many years is irregular.
The rumor inside the industry this morning is that Countrywide is about to go tits up publicly.
There is no way to guess what will happen but if the fed keeps injecting money in the market hyperinflation will follow.

[C-2]

I still don't clearly see why they would be in any trouble..
They are borrowing money to cover their current bills. They are borrowing from Peter to pay Paul. Sure, it's more complicated than that, but then again, not really.

[ULTRA26 # 1]

All the boutique lenders will be out of business soon....
Remember that we have been living in unusual times for a long time. Explosive growth we have seen for many years is irregular.
The rumor inside the industry this morning is that Countrywide is about to go tits up publicly.
There is no way to guess what will happen but if the fed keeps injecting money in the market hyperinflation will follow.
No doubt about that

[Freak]

These 200 point drop days can be dealt with but if it get around 400-500 points in a day things will get out of hand.......

[Trailer Park Casanova]

They are borrowing money to cover their current bills. They are borrowing from Peter to pay Paul. Sure, it's more complicated than that, but then again, not really.
So Countrywide is servicing the money that they borrowed with borrowed money.
They have to pay back the money they borrowed to make loans that are in trouble?

[cdog]

The investors want to be compensated more to hedge the risk for non conforming loans that Fny and Gne won't buy. This is drying up the money that they can lend and causing a capital shortfall.

[OC28HEAT]

They will be owned by BofA or Chase within a week or two at $10 a share

[Trailer Park Casanova]

Although he is a megalomaniac Cramer actually had a decent analysis of what Bernake and the FeD are up to:
http://www.thestreet.com/s/how-berna.../10374163.html
Kramer guest-hosted the Imus show once and their is a really genuine decent side to the guy. Far different from the character ya seen on Mad Money.
We put a few bux aside and are investing on his advise.
Doing OK.
Kramers investment takes get much better with insider advise from people here in ***boats.
But,, back to Yellowboats Countrywide thread,,,,,

[C-2]

So Countrywide is servicing the money that they borrowed with borrowed money.
They have to pay back the money they borrowed to make loans that are in trouble?
I believe to fund the current loans since many of their guarantors/lenders, have cut-off their avaiable credit.
Somebody else came on here with a decently easy to understand explanation about trunchs and lenders having to buy back bad loans, maybe they can chime in about buy back issues.
I only follow all the industry blogs, I really don't know the mechanics behind it all, there are peeps in the industry on here....trying to find out what they're being told, or what their best guess is (and maybe it's just that at this point, all guesses since we seem to have misplaced the crystal ball).