So let’s get this straight. Countrywide said it secured $12 billion in credit and that’s good news. Because it shows that the credit markets aren’t totally seized up. Just like every other story we’ve written about today.
We once read something about this. What was it? Oh right: “This is a delusion about credit…the idea that the panacea for debt is credit.” That’s from a book by Garet Garrett, the Saturday Evening Post columnist. It was published in 1932 and it’s called “A Bubble That Broke The World.” It's about the crash of 1929 and the subsequent Great Depression.
Countrywide Boosts Borrowing Capacity [Associate Press via Houston Chronicle]
A Bubble That Broke The World [Mises.org; pdf]
Posted by fdasdf, Sep 13, 2007 2:34PM
I don't think CFC has rebounded b/c they secured 12bn thus implying the market have rebounded somewhat. I think it has rebounded b/c securing the RC line provides additional liquidity, meaning they won't go bankcrupt in the next two weeks, making shorts cover