"Countrywide Financial Corp., the largest U.S. mortgage lender, said on Thursday it is drawing down an entire $11.5 billion credit facility to bolster its liquidity as a shortage of credit weighs on the mortgage industry."Oh oh. Is someone in trouble? I thought they had $50b in liquidity - so said their press release! Hmmmm....
"French President Nicolas Sarkozy and Europe's financial regulator called for a probe into Moody's Investors Service, Standard & Poor's and other ratings firms criticized for underestimating the risk of subprime debt."I've only been calling for that now for, oh, six months. Nothing like a good old-fashioned market crash to wake up the politicians.
"Fitch Ratings has placed all classes of 58 U.S. RMBS subprime transactions backed by pools of closed-end second-liens (CES) on Rating Watch Negative. This action includes all classes from these transactions previously placed on Rating Watch Negative. The 58 transactions have an aggregate outstanding balance of approximately $12.1 billion. 35 of the transactions were originated in 2005, 22 were originated in 2006, and one this year. These transactions comprise the entirety of Fitch’s rated portfolio of CES RMBS from those vintages."Oh, and if you wanted a bailout? You're not going to get one:
""There is nothing, in my judgment, that we should be doing in terms of guaranteeing market participants against losses or in terms of restraining risk taking," Mr. Paulson said. "One of the natural consequences of the excesses is that some entities will cease to exist.""You think?
By the way, if we do get a run tomorrow north I'm not taking any of my shorts off. In fact, I'm inclined to short into it. Ain't no way this ends well guys and dolls, and ain't no way out of the Carry Box either - except for plenty of these:
Didn't think so.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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