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Countrywide: Brink. Bankruptcy. Bad.

A reader asked us to mention the mess coming out of Calabasas--Forbes.com: "On Thursday, Countrywide Financial said it will have to draw on an $11.5 billion credit line to ease its liquidity jam. The dramatic move fanned speculation that the embattled lender was on the brink of bankruptcy." Reuters: "The drawdown, which should help the lender conduct daily operations, shows how liquidity strains have spread beyond subprime lenders to companies that mainly offer higher-quality loans." CNN Money : "Countrywide's decision to severely limit the types of home loans it makes going forward could be a sign that many home buyers will have a much more difficult time getting financing, which can only further batter the already struggling real estate market as well as the U.S. economy as a whole."