Thursday, August 23, 2007

Dow Down Quarter-point, S&P Down 1-1/2

A big fade from the early BofA/Countrywide jamming. As I noted today - a sweet deal for Bank of America (BAC) and one of total desperation for CFC: Bank of America Gets Sweet Deal.

At least Countrywide's well tanned Mozilo was forthcoming about his view that a recession is a likely outcome from the housing problems. He ought to know - then again, anyone whose head is not completely deluded by the lies of the talking heads ought to know that. All the "good" that came from 1% Fed Funds is now being taken off the table multiplied by the impact of LEVERAGE - that doesn't come without a recession? The president of Thornburg mortgage told CNBC he's also worried about recession: Thornburg: Mortgage Markets Disfunctional.

There are only 6 trading days left until September 4th. 9/4 is post Labor Day Tuesday. The bulls ought to use the next six trading days for all they're worth. You can count of further dislocation disclosures next month, along with increased hand wringing over 3rd quarter earnings. September will likely live up to its well deserved and sullied reputation.

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