Friday, August 24, 2007
Markets regain liquidity but outlook unclear
Investors are unlikely to see the full damage that turmoil in credit markets has wrought on the banks until their third-quarter results are released. The market is watching for signs of discomfort. In the US, hopes that Countrywide was on a firmer footing after a $2 billion capital infusion by Bank of America were set back after the chief executive of the home-loan provider struck a negative tone on the housing market. Angelo Mozilo, Countrywide’s founder, said: “If this trend continues, it’s going to have an impact on the overall economy. I’ve seen this movie before, and the ending of the movie always ends up in some form of recession.” What Recession Mr. Mozilo? Don't you mean a depression?