Damn, it just won't stop. Not one day of peace and quiet. Earlier Bear Stearns, and now Countrywide Financial Corp. comes out with same problems. I guess they've decided to jump on the band wagon with everyone else. I mean, if they come out and say it with everyone else, maybe they'll get less of a notice. The company has arranged for a $11.5 billion credit
facility from a group of 40 banks to increase its liquidity.
70% of the
credit arrangement has an existing term longer than four years and the rest has a
term of at least 364 days. This move shows just how troubling the credit crisis has become. Countrywide has been hit hard by the credit crunch that has already driven a number of
its smaller peers to bankruptcy.
The federal reserve also threw in another US$17 billion this morning, but it doesn't seem to be calming anyone's nerves. Around the world, every major market has been sliding down the chimney. Its scary, practically every major fund house is selling to keep cash and liquidity as their own investors cash in on their investments.
In March we already got the warning, and many experts have already warned on the trouble. Look what happened with New Century Financial Corp - what made investors so blatantly blind and dumb to think that they would be the only one. Let's see how many more will come out with these news. It won't be an easy ride, or a peaceful one anytime soon.