Because we all could use a little more panic
Oh no, no, no, no....
Countrywide has tapped its last $11.5 billion in credit to try and calm the situation.
(And, the Fed temporarily dropped the discount rate .5 %.)
Anxious customers jammed the phone lines and website of Countrywide Bank and crowded its branch offices to pull out their savings because of concerns about the financial problems of the mortgage lender that owns the bank.
Countrywide has tapped its last $11.5 billion in credit to try and calm the situation.
(And, the Fed temporarily dropped the discount rate .5 %.)
posted by mikevotes at
8:03 AM
2 Comments:
We live in an economic house of cards built on personal, government and corporate debt. So far, most people don't seem to know or care, so it all works. But as the credit crunch spreads and people starting asking for their money back from hedge funds and banks and those institutions put a halt to redemptions and withdrawals, they'll start to notice.
Hard to say if this is the start of the collapse of the house of cards or just another blip. I suspect Helicopter Ben will ride to the rescue with a "Bernanke put" when all is said and done and help create another asset bubble to replace the housing bubble. That ought to smooth things over and keep the house of cards up.
But if it doesn't...
By
Reality-Based Educator, at 10:57 AM
Frankly, it's the panic that scares me far more than the fundamentals at this point.
Yes, there are some serious structural problems, but if the readjustments unfold over time rather than in a panic stricken few weeks it's a much more manageable situation.
I am not at all an expert on this, but the wild whipsawing trading tells me we're running on emotion rather than fundamentals.
And, a bank run.....
By
mikevotes, at 1:15 PM
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