The SEC investigations and CEO frog-marches will sure be fun to watch

The world will be shocked at the amount of fraud, book cooking, falsified financial statements and cover-ups associated with the Late Great Housing Ponzi Scheme.

All those investment bank, lender and builder CEOs who just got booted? A lot of 'em will be going to jail. And so will a few others that we know and loathe (hint - the orange one).

In addition to the big guys, you'll be seeing more realtors, mortgage brokers, appraisers and failed flippers facing serious charges and heading to the big house. Yes, it's a crime in America to lie on a loan application. Yes, it's a crime to cheat on your taxes. Yes, it's a crime to falsify financial statements. Only problem - I'm not sure our jails are big enough.

SEC investigating Merrill subprime portfolio

NEW YORK, Nov 7 (Reuters) - The Securities and Exchange Commission is investigating matters related to Merrill Lyncyh subprime mortgage portfolio, the company said on Wednesday.

Merrill Lynch said SEC staff initiated the inquiry on Oct. 24, the same day the company reported a $2.3 billion loss for the third quarter, mostly because of write-downs of subprime mortgage related assets.

HousingPANIC's "Angelo Mozilo Stupid Quote of the Day"

``It was impossible to anticipate the credit crisis we've seen on a worldwide basis"

- Countrywide's Angelo Mozilo, after dumping $425,000,000 of CFC shares, either lying, or who must not have had access to HP, Contrarian Chronicles, Peter Schiff, Robert Shiller, The Economist or hundreds of other sources who predicted EXACTLY what we're seeing today.

(Yes, I'm short CFC, and thanks to an HP'er for the new Mozilo get-up!)

FLASH: As predicted here 48 hours ago, down-and-out toxic mortgage lender Countrywide Mortgage laying off 10,000 to 12,000 (for starters)

Tomorrow's news today here at HP... And hey, it's Friday night, time the mortgage lenders, banks and builders put out the REALLY bad stuff... (note - yes, of course, I'm short CFC)

This one was easy HP'ers. Next comes the multi-million (if not billion) dollar financial restatement as their auditors demand Orangelo "marks to market" the crap on his books. But only 12,000 Angelo? Sorry to say, but 61,000 are actually at risk, as this toxic business struggles to stay afloat (now that Angelo has cashed out). Maybe he can chip in for their severances with his ill-gotten gains.

Question though Angelo: With 12,000 less employees, who'll manage the lines of people streaming into your Countrywide offices looking to get their deposits back?

Countrywide Plans to Cut As Many as 12,000 Jobs

Countrywide Financial Corp. is expected to announce plans to reduce its work force over the next three months by 10,000 to 12,000 jobs, representing as much as 20% of the current total.

The largest U.S. home-mortgage lender also expects that its loan originations in 2008 will be about 25% lower than this year.

FLASH: And today, for all the world to see (including the SEC), we see why Countrywide Mortgage's Angelo Mozilo was dumping shares like rotten oranges

I hope some of you were short Countrywide. HP'ers saw this car crash coming a mile away. Next up - IndyMac.

Yes, I'm short IMB and CFC, and it was all so obvious now. Mozilo is laughing all the way to the bank, but we all know you can't take your money to jail... Good luck Orange Man with the gotta-be-coming-soon SEC investigation.

Countrywide quarterly profit tumbles; shares off 7%
Subprime problems spread to top-rated mortgages, lender says

NEW YORK (MarketWatch) -- Countrywide Financial Corp. reported a 33% drop in second-quarter net income on Tuesday and signaled that problems in the subprime mortgage market have spread to the highest-quality home loans.

The warning pushed Countrywide shares down more than 7%, to their lowest level in almost two years. It also weighed on the broader stock market because investors have been waiting to see if credit problems in the subprime-mortgage sector would spill over into higher-rated, or "prime" home loans.

"The company incurred increased credit-related costs in the quarter, primarily related to its investments in prime home-equity loans," CEO Angelo Mozilo said in a press release detailing Countrywide's second-quarter financial results.

Countrywide's second-quarter net income fell 33% to $485 million, or 81 cents a share, down from $722 million, or $1.15 a share, earned a year earlier, on softening home prices.

Further dampening enthusiasm, Mozilo commented: "During the quarter, softening home prices continued to affect many areas of the country and delinquencies and defaults continued to rise across all mortgage product categories as a result."

FLASH FLASH FLASH: FBI launches investigation of Beazer Homes - stock collapses

Deja vu WorldCom and Enron anyone? Man, it's like this stuff was pre-written. Get out the paddywagons - here come the arrests (Toll, Mozilo, Karatz, McCarthy, the list could get big - just follow the money)...

FBI Investigating Beazer Homes - BusinessWeek Says Builder Beazer Homes Is Under Investigation; Stock Plunges in Late Trading

NEW YORK (AP) -- Shares of Beazer Homes USA Inc. plunged in Tuesday's aftermarket trading session following a report from BusinessWeek magazine that federal investigators have opened a broad criminal probe of the homebuilder's lending practices, a number of financial transactions, and other matters.

According to BusinessWeek, the North Carolina field offices of the FBI, the Internal Revenue Service, and the Justice Department have opened a joint investigation into Beazer.

FBI spokesman Ken Lucas told the magazine Beazer is being investigated for "all types of (potential) fraud associated with Beazer -- corporate, mortgage, investments."

I'd say tonight's news makes this warm and fuzzy "about us" Beazer profile a bit outdated, eh?

Beazer is a highly regarded industry leader, using technology to improve company efficiency and provide enhanced customer service to homebuyers. A model of financial strength and stability, Beazer Homes USA is listed on the New York Stock Exchange (NYSE: BZH).