GOIH Capital Markets: Is there panic in the markets?

We are seeing the real estate capital markets cease to exist, with Countrywide Financial, (NYSE:CFC) on credit watch from Moody's. CFC had to tap out 100% of an emergency credit facility to fund its new products. CFC tapped $11.5 billion in short term financing in order to fund new agency products.

CFC has basically ceased to originate products that cannot be sold to Fannie Mae or Freddie Mac. It is estimated the $11.5 billion is only 30 days of money for CFC.


If CFC goes under what happens to the residential mortgage market and what happens to the home builders?

Goldman Sachs (NYSE:GS) has crashed through the $160.00 level, trading a low of $159.04 in trading today, and seems to be trading lock step with CFC. What does this say about GS's balance sheet and where are the instruments that GS bought?

Bear Sterns (NYSE:BSC) had two hedge funds blow up last week and GS had to inject $3.0 billion into one of its hedge funds last week. If two of Wall Street's heavyweights had these levels of loses, what does this say about the lesser players on the street?

GOIH Capital Markets monitors the trading in all of the major markets and scans the market for opportunities for investment. We believe our Global Relative Economic Arbitrage™ offers investors a method to profit from the integration of the global financial markets.