see comments.... I've never been a big Countrywide fan - but I've told EVERYBODY that when Countrywide goes under - it's like WalMart going out of business - we're in DEEEEP CaCa at that point.  So this just in from CNBC

By LESLIE WINES updated 12 minutes ago

NEW YORK - Treasury prices fell sharply Thursday after stocks advanced on news that Bank of America Corp. might buy struggling mortgage lender Countrywide Financial Corp.

The news was viewed as a sign that troubles in the hard-hit mortgage and housing sectors may be contained soon. The sense that economic relief may be imminent was furthered when Federal Reserve Chairman Ben Bernanke indicated the Fed is very likely to cut rates again.

The Fed chief said the central bank was prepared to act aggressively to rescue a weakening economy. "We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks," he said.

Initially, both the Treasury and stock markets rallied on the news, but the Treasury gains evaporated as investors decided to concentrate their buying in equities. Although investors are eager to see cheaper money, the fact that the economy needs a great deal of stimulation from the Fed is a concern.

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