CFC Profit Dives, CEO Makes A Pig Of Himself
At the Yahoo summary page for Countrywide Financial, the headline CFC Financials pops up. Are they really just now getting out December 2004 numbers?
Check out the drop in revenue. And what is that hokey-pokey going on in "Operating Expenses"? Got to be a misprint.
No matter to CEO Angelo Mozilo who is busy selling his stock in the firm, to add to his pile. Why does he like that 52,500 share number so much?
7 Comments:
I wonder it might be wiser to join the crowd and enjoy the easy money while it's still easy to get. After all, who is going to pay for the debts after they enjoy the good life and spend all the money? The one who don't buy into the bubble and still have money left?
"After all, who is going to pay for the debts after they enjoy the good life and spend all the money?"
While the crash will undoubtedly cost every taxpayer (either large gov bailout or hyper-inflation), it won't be the exclusive responsibility of those that have money and credit to bail out those that lost everything. I would like to see some comparisons to '29 to see what happened after that crash.
I agree with John on this, and the new bankruptcy law should help make a whole new underclass of people that are indebted to credit and loan agencies pretty much the rest of their lives.
Do you think it is a coincidence that the new BK laws were enacted at this time or was there pressure put on the law makers to get it passed before a crash caused major losses for the financial industry. At least this way the financial institutions may have recourse.
Looks like Angelo and other insiders are taking their profits off the table (they just went from paper profits to real profits). Do you think Angelo has a vision as to where his company value is going. Do you think his vision would include a correction in the real estate market, which would directly affect his mortgage company, which would affect the stock value, so he is selling now before the value of the stock goes down.
If so many home-owners are cashing out their home equity, why aren't they paying cash for their cars? I haven't borrowed on my home, but we bought a new car last year with cash. We just chose a car we could afford.
I can't imagine I'm the only person with a savings account...........why so much financing for cars if there's real "wealth" in American homes???
[I can't imagine I'm the only person with a savings account...........why so much financing for cars if there's real "wealth" in American homes???]
Well it's either one of two things. Either they refinance their house and use that money to buy a car, or they get a loan from a bank/finance company and buy the car. Either way it is financing. In the case of home wealth, it is simply adding to the price of the mortgage.
As for me? I financed a Honda Civic that's almost paid off. It sips gas and runs forever and I'll probably drive it for another three or four years and save up a large downpayment on my next car.
BTW, the dealer was shocked when I put down 35% when I bought the car originally.
I got the same reaction when I bought my house. I used the company that the builder was providing for financing. She was absoultely astounded because I had a high credit score, 20% down, wanted a fixed 30 year loan and came in under the income ratios.
Thinking back now it kind of makes me nervous, seeing as the "other" people she was financing are my neighbors and that means they're worse off than me. To make matters worse, I'm in the most affordable housing market in California (Victor Valley) and our homes were under 150k at the time.
A few years ago, my sister who lives in Florida, decided to do a cash out refi. The existing mortgage only had about 10 years remaining. Anyway she wanted money to fix her car, some dental work for the kids and remodel the kitchen and master bath, etc. She was on top of the world she had about $40,000 cash and her payments were about the same if not a little higher. Fast forward to today, car and teeth got fixed, remodel never got done, moneys gone and she's back to living paycheck to paycheck, but now instead of only having 7 years left, she has 27 years left on the mortgage. At least she got a fixed rate.
I'm sure this scenarion is being played out through the country.
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