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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: 10K a day who wrote (85308)	8/19/2007 10:39:21 AM
From: RockyBalboa	Read Replies (3) \| Respond to of 110194

Don't know but First Magnus was also a large non-subprime lender. Not in bed, perhaps. But to the best of my knowledge competitors stock hardly rose when one of the lenders fell into trouble. At the same time I have in mind that much like in the dotcom bubble some companies will survive and thrive. This is financial darwinism - survival of the fittest. But I am not sure whether we reached the point where the market will switch from failure mode to the survival mode so that winners will be picked. Maybe, Thornburg was one example that not all is bad... or like HSBC managed to keep its HI division out of the radar despite early subprime publicity. But one bird doesn't make spring. Or, the early bird doesn't get the worm.

To: 10K a day who wrote (85308)	8/19/2007 11:51:38 AM
From: Joe Stocks	Read Replies (3) \| Respond to of 110194

First Magnus -- Could Countrywide Really Go Under? cnbc.com >>This all had me talking on the phone with Guy Cecala, editor of Inside Mortgage Finance, who lives and breathes this stuff even more pathetically than I do. He said in no uncertain terms, "Countrywide is too large to fail." The company does have 1/5 of the nation's mortgages and accounts for ¼ of Fannie's outstanding business and 1/3 of its new business, he said. He also says Countrywide is no worse off than the mortgage industry overall (which I'd have to add is pretty bad), and that its trouble has nothing to do with the performance of its loans, but on the capital markets. "80% of Countrywide's subprimes are aaa rated, nobody's lost a dime," he says. It's all about panic in the market, he says. Investors are terrified of anything that says mortgage, and companies are being penalized because they can't sell the loans. <<