I’m not an alarmist, but that’s the rumor spreading around Wall Street.
Just know, the stock is down the most since 1987.
According to Phoenix Partners: Countrywide debt protection costs rise to 26% upfront from 20%.
Basically, defaults are going through the roof at [[CFC]]. This turkey looks cooked (no pun intended, regarding CFC’s heralded CEO, Mozilo).
Anyway, if chapter 11 is imminent, I believe it would have a devastating effect on the markets, more so than Enron.
In short, do not buy stocks right now.
UPDATE: CFC just halted!
“The Fly” wins again, sort of.
UPDATE II: Countrywide says not substance to rumor it is planning to file for bankruptcy protectionComments »