Countrywide Isn't Out of Woods Yet

The article in WSJ says Countrywide still has many issues.  It's bonds are still treated like junk bonds.  It's bond yields 13.16%. 

It is increasing borrowings from FHLB and $2billion it recieved from BOA are the reasons for it's survival.  We have been telling you that the FHLB has been recklessly lending to Countrywide.  

It's collateral backing the $83.56 billion has been losing value.  And it's going to get worse as the housing slump gets worse.  Housing is so bad, Tan-Man is not considering even taking a guess as to when it turns.

"I don't know where we are in the cycle," Mr. Mozilo said at the conference. "I wish I did."

Countrywide needs to repay a total of $26.38 billion in borrowings over the 12 months ending Sept. 30, according to the latest quarterly filing. Countrywide officials have said they can meet these payments -- a point that Moody's Investors Service affirmed -- but may have to sell some mortgages or related securities to do so. Investors are so wary of mortgages that it is impossible to know how much of a discount Countrywide would have to offer to find buyers for these assets.

Remember that E-Trade sold mortgages for 27 cents on the dollar. 

 http://online.wsj.com/article/SB119699651215616733.html?mod=todays_us_money_and_investing