22 replies to this topic

[zedor]

How many of those does Countrywide HOLD and how many do they originate and how many do they package and sell?

The bottom line is, someone big and smart is willing to spend big money on this business.

Pay attention. Someone ALWAYS knows more than you do in this business.

Mark

Interesting that you should make the above comment on something you perceive as a bullish move by a bank but made the bellow comment about banks when their actions en mass was bearish ie my post that they are abandoning the mortgage business in droves.

http://www.traders-t...?...st&p=309988

Banks are NOTORIOUS for NOT knowing what's coming!

They are masters of shutting the barn door after the horse is gone.

Really. There's a reason why few banks are even in the investment management business (and have a track record to be proud of). by OEXCHAOS

Edited by zedor, 23 August 2007 - 01:02 AM.

[caspary]

Hmmm, do I smell a fox in the hen house?



M

If you are BAC and you "hear" that a whole bunch of folks are short CFC, what better way to grab their money than to "invest" $2bn in CFC? Squeeze the shorts out and take their money!!! Very smart move indeed...

[OEXCHAOS]

How many of those does Countrywide HOLD and how many do they originate and how many do they package and sell?

The bottom line is, someone big and smart is willing to spend big money on this business.

Pay attention. Someone ALWAYS knows more than you do in this business.

Mark

Interesting that you should make the above comment on something you perceive as a bullish move by a bank but made the bellow comment about banks when their actions en mass was bearish ie my post that they are abandoning the mortgage business in droves.

http://www.traders-t...?...st&p=309988

Banks are NOTORIOUS for NOT knowing what's coming!

They are masters of shutting the barn door after the horse is gone.

Really. There's a reason why few banks are even in the investment management business (and have a track record to be proud of). by OEXCHAOS

Perhaps a fair comment, but really, I was talking about "market timing" vs. "Business strategy". We, in the investment business, like to talk about "dumb bankers", but they aren't so dumb always about larger strategy.

The fact that a bank would, in THIS environment, invest money in Countrywide speaks volumes. It's VERY atypical for a bank to do. They run from "obvious" risk. NEVER toward it, unless its very clear to their directors that it's a great strategic move.

M