In my April 2nd journal post (Countrywide Financials (CFC) CEO warns investors), I highlight the comments made by Countrywide Financials CEO, Angelo Mozilo.

Mozillo was a guest host on CNBC and said "that the woes of the sub prime mortgage crisis would eventually have an effect on the consumer, and consumer spending".

Mozilo also said that consumers have been using their home equity as ATM machines, and that cash has dried up.

Mozillo has been selling his shares of Countrywide Financial since the stock was around $39.00 a share. I believe Mr. Mozillio to be a straight forward and honest guy. In short, I like people like Angelo Mozillo.

Today, Merrill Lynch analyst Kenneth Bruce downgraded Countrywide to ``sell'' from ``buy.'' Bruce said that shareholders shouldn't ``understate the importance of liquidity, and if liquidations occur in a weak market, then it is possible for CFC to go bankrupt.''

Today, shares of Countrywide closed at $21.29, and it's obvious Mr. Bruce did not listen to what Mr. Mozillio had to say when the stock was trading at $39. A little late to the party aren't we Mr. Bruce?

So, the question now is, who do we believe Kenneth Bruce from Merrill Lynch, or Mr. Mozillio from Countrywide? The score right now is Mozillio 1, Bruce 0.

I'll go with Mr. Mozillio.

I am going to be listening very carefully to what Countrywide's CEO, Angelo Mozilo says in the days and weeks ahead. Mozillo has already hinted that the feds recent injection of liquidity into the financial system may be just the medicine needed to turn the sub prime mess around.

He was true to his word on April 2nd, and the Merrill Lynch analyst was little late to the party.

So Angelo, what's the real story?