Contrywide CEO Mozillo predicts recession

Angelo Mozillo, Countrywide Financial CEO, predicts a recession:

"I can't believe when you're having this level of delinquencies — [home] equity is gone, the tide has gone out — that this doesn't have material effect on the psyche of the American people and eventually on their wallets."

The doubt remains if the housing slump will contaminate the stock markets in a decisive way that originates an economical recession. The problem is no longer contained on the mortgage lenders but on the depreciated houses' prices that turn impossible for low income families to continue to meet their mortgage payments, put their homes to sell and few people and for few dollars wants to buy it.