Tuesday, August 21, 2007

Absurd CFC Rumor Presents Shorting Opportunity

This rumor was printed in the WSJ and hyped to death all day long on CNBC. The actual wording was "Some investors speculate Berkshire could be a buyer for parts of mortgage lender Countrywide Financial Corp..."

There is no substance to this story. Unnamed people are speculating that something could happen. So this is just a rehash of the rumor that Buffet was going to buy HOV. Look how that turned out.

WB likes to buy companies with strong, trustworthy management and leave them in place.

Meanwhile, "Examiners from the Office of Thrift Supervision, which regulates Countrywide Bank, recently set up a full-time presence in a conference room at the Calabasas, Calif., headquarters of Countrywide Financial..."

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