It was reported on CNBC today that Bank of America is looking to buy Countrywide for $4 Billion. Countrywide has already laid off 11,000 workers and there are certainly more to come. The markets seem to be responding positively to this and mortgage pricing has improved slightly across the board.
Prognosticators that believe the US has a 50% chance of entering into a recession over the “mortgage crisis” may need to revise their estimates now. Personally, I’ve felt that if Countrywide went under, that really would be a bad thing for the US economy. Bank of America is making what I hope is a good decision for themselves and their shareholders, but what I also hope is a great saving catch for the US economy.
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Gary Miljour 01.14.08 at 11:14 pm
Steve,
I was not surprised by this buyout, but I am glad someone stepped up to the plate and bailed out Countrywide.
Artur 01.30.08 at 9:09 pm
Seems more like Bank of America saw a good deal and took advantage of it rather then bailing out Countrywide. Home buyers in the current market should act more like Bank of America because there sure are a lot of Countrywides out there just waiting to be bailed out.