Economic Matters Affecting Housing - Market Moves
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"An analyst at Banc of America Securities upgraded shares of troubled mortgage lender Countrywide Financial Corp. to neutral from sell Friday" according to CNN Money after "Earlier this week, the stock plunged after Merrill Lynch analyst Kenneth Bruce downgraded the shares to sell from buy." It's my opinion that Countrywide's troubles aren't over yet, but I hope they are able to hang in the mortgage business as foreclosure continue to rise in many areas of the country. The loss of jobs and stability in the market would be huge , should Countrywide fail. There is talk and as always rumors flying around regarding a potential government bailout, should the situation worsen. For point & counterpoint regarding a possible federal bailout, visit:
Countrywide's stock rallies with a 10.5% increase, due to several factors including discount rate drop, upgrades in stock ratings and acquisition of 11.5 billion in credit to alleviate short term (hopefully) cash flow and funding issues! Overall after a few dismal days on Wallstreet, the stock market has had significant gains today. Possibly the most important news of the day: The "Federal Reserve Cuts Discount Rate to 5.75%" to ease credit and more importantly acknowledge willingness "to take further action to ``mitigate'' damage to the economy" as reported by Bloomberg.com. The market definitely got a small (false?) sense of relief today. Too much, too little, more to come? Who knows? In This Is Bigger Than Just a Lender, Mike Mueller does an excellent job of explaining how different lender crises affect each other and how "All Things ARE Connected". Have a great weekend and we'll see what next week brings!
For relocation and general information (including school information, crime statistics and more)about Athens, Georgia and the surrounding area including Madison County, Jackson County, Barrow County, Oconee County and Oglethorpe County, Georgia, see the other post on our community blog at All About Athens GA. For more information about homes for sale and real estate in Athens, GA or to request a Relocation Package for Athens, GA and the surrounding areas, please visit our website at Success Realty or email Michelle DeRepentigny at Michelle@SuccessRealtyGa.com. Michelle@SuccessRealtyGa.com Success Realty website
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As we near the end of the week, there are some promising stories regarding the housing and economic market.
Michelle - Excellent article and thanks for the mention.
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Mike, thanks for stopping by - you wrote a great post! It amazes me how some people don't get the overall picture of what is going on in the secondary market and how it affects everything,
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With the $2 billion infusion of capital from Bank of America, it appears that Countrywide is at least ok for the time being.
But yes, you are absolutely correct - its all tied together. Its like pulling on a loose thread in a sweater - it all runs together, and everything affects everything else.
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