October 24, 2007

FLASH: Merrill Lynch just announced another $7.9 billion in mortgage cancer write-offs, and to think we're still just getting started


Ouch.

That's gotta hurt.

And you ain't seen nothing yet. Just wait until Countrywide Toxic Mortgage reports on Friday. Major companies will go away during this downfall. Banks will fail. And the financial community will be shaken to its core.

The losses when this whole Ponzi Scheme are counted up will be in the trillions. Yes, the trillions. Nobody can stop it, and the truth is getting tougher and tougher to hide.

Merrill 3Q Roiled by Mortgage Crisis - Merrill Lynch Posts Steep Third-Quarter Loss, Roiled by Mortgage and Credit Crisis

NEW YORK (AP) -- Merrill Lynch & Co., the world's biggest brokerage, on Wednesday said the summer's credit crisis triggered a bigger-than-expected $7.9 billion writedown during the third quarter.

Bad bets on mortgage securities and leveraged loans used for corporate takeovers caused it to post its first loss in six years. The blow makes Merrill Lynch the hardest-hit investment bank on Wall Street amid the recent market turmoil.

The losses were a big miss from what Merrill said it expected on Oct. 5. The company warned Wall Street at that time that it would take an almost $5 billion writedown for the quarter, because of its exposure to risky mortgage-related securities.

Chief Executive Stan O'Neal said the company continues to face uncertainty on the impact of its mortgage-related investments.

46 comments:

Anonymous said...

you have to give these guys credit for putting up some reasonably honest numbers though. I'm not expecting cfc to follow suit.

guy n. cognito said...

.
.
AWESOME!!!!

stuff that commission up your arse, Merrill Lynch!!!!!!

Anonymous said...

Sounds like a lot of bonus checks flying the coop this Christmas. Oops, there goes Manhattan!

Anonymous said...

where does all that money go to??

Boom2Bust.com said...

“A lie gets halfway around the world before the truth has a chance to get its pants on.”
-Winston Churchill

az_mtb said...

.
.
.
Home Sales Plunge by 8 Percent
Sales of Existing Homes Fall by Largest Amount on Record in September


http://tinyurl.com/2ohad7


....Look out below!

Anonymous said...

I was just watching CNBC at 11:00 and they were talking about the Merrill Lynch 7.9 billion write off and the question was asked how did they come up with this figure? She lady asked if it was "marked to market" or not and there was no answer but they spokesperson said more likely this is a sign of things to come in the 4th quarter! The quote was "we invested to heavily in this sector" well duh!!!!!

Down time said...

"Housing horror could hang around for years"

article on MSN Money...

http://tinyurl.com/2o9q57

no one can yet imagine how bad this is going to get

Anonymous said...

is there a website/blog that is tracking these announced write downs?

Carol said...

My husband and I lost about $700,000 in real estate. On my blog, "Overcoming Real Estate Losses," I use humor and optimism in the face of this major financial disaster. Check out the intimate details at http://whinecountryrealestate.blogspot.com/

Osman said...

No Keith. Not another 7.9Bn. MER's earnings were released and it included a write off $3.4Bn above the $4.5Bn they previously announced on October 5th. MER's results tally up to a net loss for the quarter of $2.24Bn, the first loss since 2001.

DOPEY said...

UM, YOU MEAN I WON'T BE GETTING A BONUS THIS YEAR KEEFER?

I DON'T FEEL SO SMART TODAY.

Midwest said...

Keep remembering, we're just getting started, things have just begun to tip. It will get ugly 10x as fast as it got pretty.

When realtors have replaced the illegals waiting outside home depot for day labor, I'll know it's time to buy.

borkafatty said...

You know Keith after reading this

http://online.wsj.com/article/SB119318489086669202.html?mod=todays_us_money_and_investing

I would say CountryWide is doomed.

Frank@Scottsdale-Sucks.com said...

But renting is for losers. It's worth this financial meltdown to say "I OWN! I OWN!"

Anonymous said...

where does all that money go to??

October 24, 2007 2:44 PM

It never really existed in the first place. All of this is hot air, deadly hot air, but fake just the same.

The danger comes in the form of the destruction of the real economy. Infrastructure, medical care, food production etc.

They've looted the real economy to finance all this magic and trickery.

But these banks have been bankrupt for years and years.

It is long past time for an FDR solution.

Vectorz said...

My husband and I lost about $700,000 in real estate. On my blog, "Overcoming Real Estate Losses," I use humor and optimism in the face of this major financial disaster.

Carol,

I'm sorry but in order to lose money, you need to have *had* money to begin with. All the money you 'lost' isn't yours to begin with. Losing borrowed money and walking away from that debt means you lost someone else's money, so please don't declare it as your own.

Anonymous said...

I dont get it

why are shareholders shocked????

coffee is for closers with wristbands said...

A mortgage gets halfway around the world before the customer misses their first payment.”
-Angelo Mozilo

A lie gets halfway around the world before the truth has a chance to get its pants on.”
-Winston Churchill

borkafatty said...

Carol,

I'm sorry but in order to lose money, you need to have *had* money to begin with. All the money you 'lost' isn't yours to begin with. Losing borrowed money and walking away from that debt means you lost someone else's money, so please don't declare it as your own.

-----------

Funny How do you loose a Digit?????

Anonymous said...

I took a taxi ride in northern virginia yesterday and the driver was telling me about the housing situation in his hometown...Woodbridge, VA. He said he's trying to sell his house for $360k and he feels bad b/c last year he convinced his friend to buy an identical one on his street for $495K. So in one year the value dropped $140K, or almost 30%. He told me of people he knows...low income people...who "cashed out" their homes and went back to Ghana; just walked away. I don't know what "cashed out" means but it sounded like these people took some money and ran with it and left someone holding the bag. He also told me of a friend of his who's about to go under b/c of the mortgage.

Anyway, I told him to sell his place as fast as he could...drop the price even more if he had to...just to unload the thing since it is just gonna get worse. I think he is going to take my advice to heart.

Anonymous said...

Yes, Yes, what will Friday bring?

As a Countrywide Employee who has seen more corruption and crap that I care to admit, I'm afraid we are nearing the tip top of the final peak, before the Roller Coaster starts careening down hill. How much longer will Corporate be in DENIAL??--(Smiles, Smiles everyone)! I feel like I am on the Titanic, and starting to hear that evil sound of steel twisting and lurching--It is almost like things are in slow motion--I can hear the violins on deck....

Subprime's got NOTHING on the upcoming disaster we will see with Option ARMs---Man talk about ugly.

Hold on tight people--

Anonymous said...

Oh yeeeah--Woodbridge is foreclosure central right now, and it's taking everyone else's equity along with it...

Home prices just haven't come down far enough, no one can actually get it through their head that their house was never worth $600K, and if they don't sell it now, it will end up going for 300,000 in the next year.

Woodbridge--What an ARMPITT

Anonymous said...

I took a taxi ride in northern virginia yesterday and the driver was telling me about the housing situation in his hometown...Woodbridge, VA

We need a Martin Scorcese taxi driver, then we'd have some real fireworks.

Anonymous said...

I am a Countrywide Employee, and I will tell you that just seconds ago, we got a very ominous-sounding message via email from our fearless-leader, ANGELO.

A suspiciously-short thank you note to everyone that at the end references a "new and different chapter" for our Company....I think some nasty news is coming down Friday--

Anonymous said...

Yep, Northern Virginia is tanking, even starting to in D.C. as well!! (even though residents there will deny it till their dying day!!)

It was all "different here, Capital of the world, we have all the jobs here, blah, blah, blah!!!)

NOT!!

Sold mine in NoVa in 2005 & sitting pretty. Many foreigners will cash out & head home/Country of origin..why pay big dollars for a declining asset???

Happy Homedebtor said...

Re NoVA/DC Area comment:

Fundamentals did matter. From the VA suburbs past Fairfax, you have not only a long commute distance-wise, but you're going through that nightmare known as Fairfax County and through the dreaded mixing bowl and/or over the Woodrow Wilson. I used to get calls about jobs based about my location - just the commute alone would be enough to have thought "you know...it's not worth it" for Loudon/Prince William Co's.

Say it with me: Charles County. :)
Even with the 30% off firesale you're reporting anecdotally in PrWlm, they're pricier than us. Commute is shorter, traffic is lighter, county planning is better, retail is more plentiful, schools are better and better-funded, etc etc etc. :P

They always say: location location location. Whereas everything may be taking a hit, the strength and lasting impact of the hit will vary greatly across the area and country. Good luck, and god speed.

Eric said...

"I don't know what "cashed out" means but it sounded like these people took some money and ran with it and left someone holding the bag."

Pretty much. They took out everything they could on their home right before they left the country knowing they'll never get caught.

Anonymous said...

Mmm boy that's gotta hurt and its definitely going to leave a mark!!(to market HAHA!!)

cabbiesouth said...

A Gabbie got that kind of money, where do I sign up? I had to pay 600.00 a month and we wrote it down on a Marlboro carton box. I doubled it up some months others not. toke me 8 year's to pay it off.

Anonymous said...

I work with people who commute from Charles County/Southern Maryland and by all accounts the commute to downtown DC is not much different nor is it better than any other far flung exurban county such as Prince William or Loudoun. All areas in the Washington DC region are taking a major corrective revaluation hit and will suffer due to taxation problems for education and services depreciating assessments down to pre-bubble years level.

Anonymous said...

>> who "cashed out" their homes and went back to Ghana.

Hee, hee - from hell hole to turd world shit hole...

Anonymous said...

Maybe CFC will be giving employees matching cuff links and earings on Friday and just bypass that pesky earnings report!

Anonymous said...

where does all that money go to??

Can anyone answer this question???

When money is "lost" on Wall street where does it go? I have a pretty good idea where it goes!

Anonymous said...

ML employees deserve to get the green bracelets from CFC employees. Kind of a group hug sort of thing.

However, ML employees may have to give them back to the CFC employees on Friday.

sam said...

F'ing billiant play on the CFC puts there keith.

I remember back in the day (three weeks ago) when the market rallied tripled digits because MER wrote down $5bn. All these ahole hedge fund traders bought the conventional "big bath" theory that co's always write down too much so they can show profits later. Complete nonsense. Yes, it really is different this time. That $5bn was a understatement, not an overstatement. Amazing how'd they f that up and lose $3bn more in a couple weeks? Maybe their auditors wouldn't buy off on their market to model bs?

Of course next week bitchboy Bernanke will now pump some more money into the ML toilet to help push their crap down the tube.

banker said...

It's going to be real money pretty soon.... suckas

herman munster said...

That's nothing compared to the $2.5 trillion dollars that the Bush regime stold from the American tax payers.

I told you republicans that Bush and his budies are evil people YEARS ago!

But nooooo! You stupid as* wipes wouldnt listen to me or the other warnings. Bush and Cheney will have destroyed America by the time the sheeple republicans realize it. Just think how bad things have been going since the Bush regime took over. These last days will be awesome when Bozo Bush becomes the final anti-christ and attacks Iran - like what Hitler did by stepping up the mass-murders and the fake 9-11 attack.

I told you so!!!!!!....

USA
1776 - 2001

><

Anonymous said...

Anyone with an opinion of how this all affects the stock market? Right now it's a tale of two markets, tech stocks and oil stocks on fire near all-time highs. Financials getting killed.

Will the whole stock market eventually be dragged down by the housing market? Is it time to cash out not only from real estate but move our 401Ks to cash as well?

Kathleen said...

Market manipulation today in a blatant way:

Check it out and then sign the petition.

http://market-ticker.denninger.net/

http://financialpetition.org/

Anonymous said...

Can't wait also for the defense/Hoemland security bubble to pop in 2010. Goodby phony IT and security firms. Coming right on the heels of the RE implosion, the US won't be looking too appetizing.

SEC said...

To Happy Homedebtor

I moved out of that redneck hellhole called Southern Maryland, except I lived in Calvert County which is somewhat better than Charles County. I moved back to Virginia, where I should never have left and now live in beautiful Fauquier County. Southern Maryland real estate is hurting just like all the other suburbs, especially Calvert County. Now everytime I go over the Woodrow Wilson Bridge into Maryland, I think to myself "The best part about going over this bridge is that I get to go BACK over it to return to my home in Virginia".

Duke and Duke said...

Herman Munster,

Yawn... thanks for putting me to sleeppppppppp...

Anonymous said...

I am a shareholder of CFC, and expect to make more coin in the expected drivitive suit calss action than in the few shares of CFC stock I still own.

Here is the internal memo text that was posted by an employee at Country Wide. It leads one to wonder just what was the intended message by their DEO to his legions.
Message from the CEO

Message to all employees from Angelo Mozilo, Chairman and CEO.

There is no question that all of us at Countrywide and all those involved in the financial services industry have been impacted by this unprecedented world wide credit crisis. Over the past 40 years, since the founding of our Company, there have been many global and domestic events that challenged the will, the tenacity, the strength and the character of the Countrywide family. Each and every time we have risen to the occasion and, in fact, we have led not only our Company but also the industry through many periods of crisis.

During this time, I have received many kind messages from employees throughout the country. I want to take this opportunity to thank all of those who have expressed their support for me personally, and to convey my deepest appreciation for all members of the Countrywide family who continue to work very hard and who have made tremendous sacrifices on behalf of our Company. I would also like to recognize Dave Sambol and the entire team who have worked tirelessly for the past several months in managing the many and varied challenges that have arisen as the result of the disruption in the credit markets.

Again, thank you for your continuing dedication to Countrywide. I commit to each and every one of you that I will do everything in my power to make certain that our management team utilizes all of its resources as we migrate through to a new and different chapter in the history of our Company and in our industry.

Happy Homedebtor said...

To Sec:

No, Calvert is far less convenient, far longer for commuting, etc etc. Waldorf is barely Southern MD. Everywhere is hurting, it just varies how much.

Fauquier? You must work off-hours or love 2-3 hours each way in the car - the entire point of Waldorf is that your commutes, while none are short, are 30-60 minutes to anywhere. PG, DC, core-NoVa over the bridge, hell even Baltimore is only a bit over an hour away. MoCo can be a bit tricky but still under 60 if you're smart about it. Good schools, reasonable commutes (for DC-area), good value compared to anything else with similar things going for it.

To invert the believers' own logic on them, I haven't lost any of that money until I sell. :D Even with my builder apparently slashing base-prices drastically, I'm currently even-money and will be ahead when I finish my current project that'll take 6 months and cost a whopping $1-2k, with an ROI of 3-5x that. So at 20% off, I'm breaking even pre-commission, and we're not leaving for another 4-9 years. I'm already working my mortgage company to lower my balance and the county to lower my prop taxes. So uncreative - no wonder you guys all believe everything Keith says. ;)

Anonymous said...

Has anyone read Carol's blog?

http://whinecountryrealestate.blogspot.com/

Jesus, what a bitch.

I'm glad she "lost" money.