Archive for March 4th, 2009

Former Countrywide executives cash in on federal housing bailout

After overseeing a company at the very center of the still-imploding U.S. mortgage market, a dozen former executives are now poised to make millions from the housing crisis.

Stanford L. Kurland, the former president of Countrywide Financial – the bank that has become most synonymous with the bad mortgage lending practices that eventually caused the housing market to burst, setting into motion the current financial crisis – and colleagues from the defunct firm now run PennyMac.

The company, headquartered in the same Los Angeles suburb where Countrywide was managed before it was sold to Bank of America last summer, specializes in buying up bad home mortgages that the U.S. government took over from other failed banks, the New York Times reported Tuesday.

PennnyMac has been buying up some of those mortgages for just a fraction of their value, and they keep a portion of whatever money they collect from the mortgage holder.

PennyMac’s business has been “off-the-charts good,” said John Lawrence, the company’s head of loan servicing, the Times reported.

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Technorati Tags: Countrywide, Foreclosure, mortgages, PennyMAc, Private National Mortgage Acceptance Company

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The Dow sunk to its lowest point since 1997 yesterday, but President Obama says that’s a good thing if you’ve got some money to play around with on the stock market.

While answering questions from reporters today during a photo opportunity with British Prime Minister Gordon Brown, Obama took the opportunity to hand out some investment tips based on the old ‘buy low, sell high’ maxim: “What you’re now seeing is… profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it.”

There you have, it sound financial advice from a man who managed to double the nation’s debt in less than 6 weeks he has been in office.

The President conceded that he doesn’t get too upset over the “day-to-day gyrations of the stock market,” because he’s focused on “the long-term ability for the United States and the entire world economy to regain its footing.”

Comparing the market to political tracking polls, Obama told reporters, “You know, it bobs up and down day to day.”

Bobs up and down, he is kidding, right?

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Technorati Tags: bailout, Dow Jones, Government, Obama, sheeple, stock market, stock market loss, Unemployment

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