Things are really heating up for the credit-mortgage crunch.
We now have the news of a significant new wave of layoffs, closings and distress with Countrywide Financial (NYSE:CFC) cutting considerable staff, Capitol One’s (NYSE:COF) residential mortgage subsidiary GreepPoint Mortgage closing its doors, and GMAC’s residential mortgage unit ResCap Holdings suffering with its loss of non-conforming loan production.
Watch Countrywide Cut on BNN!
Watch GreenPoint Flop on BNN!
Watch GMAC get Squeezed on BNN!
To add a further complexity, Congress is now stepping up its actions, announcing a previously unscheduled meeting today between current presidential candidate and Senate Banking Committee Chairman Senator Dodd (D-CT) and Ben Bernanke as well as a seeing a significant new round of regulatory rumblings from House Financial Services Committee Chairman Representative Barney Frank (D-MA).
Watch Dodd Preach on BNN!
Watch Frank Regulate on BNN!
Finally, as Nouriel Roubini sees it, the Feds latest strategy has not worked, panic is continuing to spread as indicated by the by the latest US Treasury yields, and that the Fed is likely to cut rates 25 basis points in September and possibly could have an emergency cut even earlier.
Watch Roubini Be Right Again and Again on BNN!
