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The group blog of The American Prospect

(SCARY) QUOTE FOR THE DAY.

mozilo.JPG “We have no way, with any reasonable certainty, to assess the real risk of holding these loans on our balance sheet. The bottom line is that we are flying blind on how these loans will perform in a stressed environment of higher unemployment, reduced values and slowing home sales.”

-- Former Countrywide CEO Angelo Mozilo, writing about sub-prime mortgage loans in an e-mail released as part of the Security and Exchange Commission's civil suit against him for securities fraud and insider trading.

--- Tim Fernholz
Photo courtesy New York Social Diary.



COMMENTS

True story: I'm just as alarmed by how orange that guy is. How on earth does one man eat so many carrots?

We have no way of knowing how the assets will perform: bad, really bad, really really bad, toxic bad, decimate the company, bring the US economy down ...

I worked in finance I.T. at Countrywide some years ago. I could not personally have predicted how bad things would be because I did not expect the economy to tank like it has, but I (and anyone paying attention) knew that the simultaneous reset of the first big wave of ARMs would be a huge disaster.

Angelo is implying he had no more information that I did and of course that is an absurd lie. The folks who did (and still do) the pricing and valuation for the loans were PhD geniuses and whiz kids with massive I.T. resources available to them and if they didn't have a very good idea exactly what would happen, it's only because they chose (or were directed by Oh Tan One) not to crunch the numbers based on a scenario where home values fall, oh just for example, to pre-bubble levels.

I have no problem with this guys becoming the scapegoat and poster boy. We have some work to do as a nation to reflect on this and understand how we are all so easily led down the drain by charletans of this order.

wow this post is very nice i love this post because there some valuable information for me

What kind of marinade do they baste this guy with? Because I think might want to use it on some chicken breasts.

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