”
That’s why we suspect that BAC is playing a very dangerous game and is going to continue to drag their feet on closing the CFC deal. We believe that Ken Lewis is playing chicken with Washington, hoping to force the Fed and FDIC to provide some type of subsidy to help shield BAC from the still massive unliquidated claims pending against CFC, claims that could total in the tens of billions of dollars. Without a bankruptcy to flush the litigation and other unliquidated claims, buying CFC may be a no win scenario for BAC shareholders and Ken Lewis.”

from an article I was reading here:

http://seekingalpha.com/article/82051-bofa-countrywide-can-ken-lewis-rescue-the-kobayashi-maru

One neat subject with CountryWide is this Red Oak holding company.

Again, not that I’m a fan NewsCorp owns all of these media outlets, but a MarketWatch user had an insight yesterday that Red Oak will be a way for CW to dump its losses in Chapter 7 FOR that company.

Me ? I think CW will get Fed aid as the article above from that link hints at, and in the end ? BoA will BEAT Exxon’s RECORD US corporate profit this year when that happens. To date I observe the TWO sr. architects for this war on terror are now in sr. positions with Bank of America – I can’t not ask myself, what are they doing THERE ? Di Rita joined RIGHT before CEO of CW dumped his stock. Someone knew SOMETHING was coming !

I can see some Made for TV movie – “We can’t tell the people the oceans will be flooding the coastlines, how can we get something NOW from this without letting the cat out of the bag on global warming Mr. President ? ”

“You can tell them global warming is a myth, and here, use my political propaganda network Fox News to run your CountryWide ads – to give the properties away – offer them no money down, no credit check, no job check, no payments for 5 years, and no interest either – that’ll move those properties before they’re flooded, and remember, play down the global warming, we don’t want any panic !”

heh – ok ok – let’s HOPE that’s a Made for TV movie – maybe I chose the wrong genre there – but let’s HOPE that’s fiction… Because the truth is – satellite maps SHOW we’re looking at rising sea levels AND faster ice melt than before anticipated, so – US coast lines ? get ready for financial mayhem – whether we prepared for it or not (we didn’t prepare for this, we chose the road of denial and insolence).

I’m not doom and gloom on global warming, humans will make it, I’m just saying, did someone know about this and send out the opposite signal so they could cash in on some coastal mortgage swindels ! heh heh

I must be insane, I’ve not read that anywhere, and I do say – it’s appealing to me. Of course the alternative would be what ? Countrywide believed giving out 5 year no money down, no credit check ? no job check ? no payments at ALL was in their best interest ?

Who in THEIR right mind would give OUT mortgages like that, unless they were gettin’ out of dodge like a snake oil conman.

???

I mean, really, would CountryWide or any of these brokers given a mortgage to an 18 year old ? I do wonder. I have to ask myself – why would any broker ever ever allow this kind of behavior ?

—–

Mom, Dad ?

Can I have 375k for a new house ?

I don’t have any collateral and I won’t be able to make any payments for 5 years. I have a backup plan, I’m going to take a loan out on my home and invest into the stock market.

But I PROMISE – this will work out !

My paper route is going REAL well – I think I’ll be making lots of money next year.

“Go talk to CountryWide down the street son, try your luck there”

This brings up an issue I’ve thought about which is tricky to think about.

George buys a home.

The mortgage is bundled up into some CDO for oh ? say Bear Stearns.

Now, George borrows against his home.

George invests into the stock market – say into something that in turn ? HAS his original mortgage wrapped up in it.

At this point, I drop the ball, as I can’t figure out how it might be George can make money using a loan on the home that’s mortgage was part of the product that he made money on bought with a loan against the home that’s mortgage was a part of the product … onward.

I ask myself, did this ever happen ?

if so, and to this day – how many situations are out there like this.

Phone rings:

“Hi sheila! Guess what ?”

“What ?”

“I just invested in this new company ? they buy mortgages ? ”

“What ? ”

“Yeah, I took out a loan on my house, and used the money to play the markets”

“oh neat idea Francine”

I ask -what if Francine’s loans are tied up in the investment she made on BOTH ends ?

something elmer fudd wrong with this picture.

insights anyone ?

That is interesting about the 2008 resets starting, in that one can ask – if one wase ML, etc, how or what would one be juggling these losses.

I wonder in what ways we can see attempts to prevent write downs, and of course, what kind of write downs to expect.

I also wonder if interest rates are kept steady right now, instead of an increase to fend off inflation so as to give some padding for these resets coming.

I mean, if the MOB lends you that kind of money, with nothing down, etc, to reset after 5 years, traditionally in the movies in 5 years, you get a visit with consequences. What can we expect as the consequences or damages from these current resets coming ?

That subject alone I find intriguing.

Now, I ask myself, with Fox News running CountryWide as it’s largest advertising account ?

Bottom line, this corrupt company CountryWide paid the salaries of Fox employees.

I observe Fox has taken off their CountryWide advertisement from the front page, which was up until oh ? last week I think.

Now ? The ads are Newt Gingrich newsletter – Ann Coulter newsletter or an energy company advertisement.

I tell ya, Fox ads look like a shorthand front for http://www.humanevents.com

Odd, there is Gingrich, Coulter, O’Reilly, Hannity, the whole crew over at http://www.humanevents.com

Strange how small the world is sometimes I guess.

Stranger when Fox and CountryWide had such a profitable relationship.

Now, if Fox KNEW that CoutnryWide was engaging in phony mortgage practices, Kevin Martin or not, they could end up losing their FCC license if proven.

Interesting subject indeed.