Irrational Exuberance, Oct 2007-style

Hey, everybody! It's Saturday!

Let's review what I consider the most interesting stock market news from yesterday.

Troubled home lender Countrywide Financial reported 3Q results yesterday. Here are the highlights:

- Countrywide Financial Corp (CFC.N) posted a $1.2 billion third-quarter loss on Friday
- The quarterly net loss totaled $2.85 per share, or $1.20 more than Reuters Estimates said analysts on average expected
- Countrywide wrote down $1 billion related to capital market disruptions.
- It set aside $934.3 million for credit losses, up from $38 million a year earlier, as more borrowers fell behind on payments
- Countrywide said borrowers were delinquent on 29.08 percent of subprime loans it serviced as of September 30, up from 23.71 percent in June.

Truly some grim results. I can only imagine the market must have really pummeled their stock.

Countrywide shares rose $4.23 to $17.30 on the New York Stock Exchange

Huh. You don't say...

Makes you wonder what all those buyers were expecting CFC to report, no?

So, at this point, I'm convinced that the financial markets are just completely covering their ears and shouting "la-la-la...I can't hear you!" for about half of the economic news coming in. There can't be a recession, because I called bull market, no takebacks.