Re: Countrywide
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I still don't get why this is a surprise to anyone. I thought everyone saw the lending practices in the bubble and knew what was going on. How could you possibly buy a mortgage bundle from Countrywide and think it was a AAA security?!?!?
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Because Moodys, S&P, and other rating agencies were lying. They give AAA ratings on worthless paper.
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Lying may be a little strong but mortgage backed securities were certainly over rated. In July, rating changes were made to something more reflective of reality. That triggered a sell off and the ensuing credit crunch.
Very good article in WSJ on Aug 15 about the role of Moody's and S&P in all this.
To the guy who bought CFC on Thursday: You are very lucky. Take the money and run. If that ARM reset chart is correct a lot more pain is coming.
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