Countrywide CEO sees recession ahead Notme

Chief Executive of Countrywide Financial Corp, Angelo Mozilo said that U.S largest mortgage lender will survive, but the housing downturn will lead the country to recession. When Mozilo was asked about recession, he said: "I think so ... I know I've been proven wrong so far, but I can't believe that when you're having a level of delinquencies, foreclosures - equity has disappeared, equity is gone, the tide has gone out - that this doesn't have a material effect, A, on the psyches of the American people, and eventually on their wallet."Bank of America Corp. invested $2 billion in Countrywide to help shoring up their finances, but Mozilo says Countrywide would not be sold to U.S second largest bank.He called the investment a "vote of confidence" and a "priceless endorsement."Mozilo said that the Federal Reserve should reduce even more its rates so it should be the same as the federal funds rate, now 5.25 percent.Phil Orlando, chief equity market strategist at Federated Investors in New York said: ""The Fed has cut the discount rate and added liquidity to the markets but those things aren't enough to turn the fundamental market around." According to him the funds rate should be cut to 4.25 percent by year end.In an interview, Countrywide CEO accused Merrill Lynch & Co. analyst Kenneth Bruce of "irresponsible behavior" because he said on August 15th that Countrywide might face a possible bankruptcy if market conditions worsen. Merrill Lynch spokeswoman Carrie Gray declined to comment on this.

related story: http://news.yahoo.com/s/nm/20070823/bs_nm/countrywide_interview_dc;_ylt=Ahu_8rOK2LE29570JGkcJvKs0NUE

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