What is “your area” specifically?

Or is that a secret?

Buying assets is what I do with investments in multi unit rentals, now that is buying an asset. With a home purchase I looked at what is the payment for the next 10-30 years. And whether the value of it goes up or down is not that significant as I am in it at least until my kids finish school which is 12 years from now.

Peace.

What kind of a company would keep Kerry Kill-WaMu as CEO for so long, even with the “writing on the wall” over a year ago? Honestly, is ANYONE surprised they’re stock is pushing $2/share? I hope not.

Patient, YOU ARE ABSOLUTELY CORRECT! I smell realtor sh!t! This is a complete ploy from an anonymous realtor to garner trust and placate to the emotions of future potential buyers/sellers. Its predatory.

Matthew – most people that denied the bubble on this blog have financial interests tied to property (own or rental). Cheap personal attacks are easier than confronting facts.

“It is difficult to get a man to understand something …when his salary depends upon his not understanding it” – Upton Sinclair

What probably will happen is a situation like Bear Stearns, where JPM a stronger institution acquires WAMU with the Fed backing or cleansing or doing some sort of voodoo on WAMU’s bad assets. Why isn’t anyone stepping forward now? Well, why the heck would anyone? Things are getting worse, so no reason to jump in now, and the best deal will come when WAMU is really on the verge of collapse.

BURN BABY BURN!!!!

Also, I apologize for my WAMU post above. It appears more mean spirited than I intended it. My real intent was to emphasize at the heart of any business model it is important to treat your customers well, and I believe not having done that has a lot to do with WAMU’s impending failure. I’m primarily meaning the predatory lending climate.

When a few weeks ago, I mentioned I thought a major bank would soon go belly up, I was mostly referring to WAMU. I think a lot of us feel the same way about it as far as risk is concerned. And if it goes, the earth will tremble. It won’t be a pretty site.

Some people probably think I am a perpetual gloom and doomer. But really my excitement of the current economic situation comes from historical significance of what we are privileged to bear witness to.

And if money is no object as it seems to be for Mukoh…why wouldn’t you send your kids to private school and then scoot them off to Andover, Exeter, St. Pauls, Groton, Hotchkiss, Choate or Deerfield?

They’d be able to do bong-hits with some really unique people too!

nice position to be in, sadly the vast majority of people do not live in such luxury and purchasing a house is not a flippant decision. I am sure if most people here had a boatload of money to buy an oceanview way-over-median house in the best school district in the state they also wouldn’t care about the market.

I pay way more then median price for a house in the best school district in this state. Even if the house doesn’t appreciate or goes down in value makes no difference to me as the payment is locked for a few dozen years to come, and I get to see the ocean every morning out of my windoz. Payment will never change. :)

When you guys stole $300 from me, I attempted to tell the manager assigned to field my complaint your company would eventually pay the price for adopting a business strategy of biting its customers’ hands during feeding times. I went on to explain WAMU was founded upon principles of providing courtesy and free services to its customers, and this was imperative to maintaining a financially-sound base of investment capital from which to grow upon. Well, she didn’t think much of my business hypothesis, and you guys continued to defraud your customer base long after I closed my account.

Today, I’d just like to say, “I told you so.”

As for WAMU being well capitalized and SeattleBubble bloggers being uninformed, today, I would just like to inform you that 11 days prior to being ceased by the FDIC, IndyMac was well capitalized too.

Let’s not discuss the double digit price declines, let’s comment on how someone runs their PRIVATE blog.

Question I have to the board is what do companies with accounts (i.e. payroll) do with accounts at WAMU? The FDIC won’t protect above 100K, even medium sized companies need more than 100K operating cash. If you were CFO of a company wouldn’t you be closing your company account now? Given that WAMU is such a huge bank, there must be many company accounts outstanding.

I would guess the traders would wait until a few dominos like WAMU fell causing true financial panic and then go long on BAC – no question B of A is too big to fail and they will be getting a lot of business from scared depositors (especially institutional).

then don’t buy a car and ride a moped, or estimate how much a child costs before having one.

The great irony is that the August NWMLS data may not be the best data for the media to react to. It’s erratic from month to month though directionally accurate. I’ll be curious to see the August Case-Shiller numbers in a couple months when they come out to see if the slope of decline has actually increased. I hope so, because it’s going to take a lot more than the recent slow rate of decline to correct this local housing bubble.

OTOH magnolia, assuming you have no skin in wamu’s game, would put your money into WAMU CDs today??

So you felt the need to post where a comment came from on your blog? Seems pretty shady, people posts on boards blogs etc usually under the premise of some type if anonymity. I think that was a lousy thing to do to point out where the WAMU poster was commenting from.

If you are going to make a habit of that good luck on your website career, bush league move in my opinion.

Who wants to have to take a day off work though to wait in line to get your money when you can go it out now without the hassle.

You don’t have to do that to get your money out of a failed bank. If it’s FDIC insured it’ll be there the day after and even several months after. If it’s not insured it’s gone whether you get in line first or wait a year to withdraw. You might have to wait a month or more to access it however.

This doesn’t exactly encourage one to do business with you

If WaMu adjust the cost of its investment (mortgage notes) to the fair market value properly, it will be well below the book value. In other words, liabilities are greater than assets or negative equity. WaMu has played the game for many years to risky borrowers. It de facto dug a grave to bury itself.

IMB had cash until depositors pulled out $1.3B for 11 days when the stock dropped below $1 on June 26. Fed shut it down in on July 11. If WaMu sinks below $1 by Friday, history may repeat again.

Hey my husband delivers pizza at the age of 34. A great second job and he likes doing it, with daycare so expensive for 3 kids someone has to make up the all so important second income in this day and age.

I was asked the exact same question this afternoon. Even as I was attempting to close my account, they kept trying to push their amazing CD rates on me.
I wanted to ask the sales rep, would he/she put all his money in a WAMU CD today? But then why bother troubling the poor employee? They have to sell the company line, it is their job, so I just closed my account and went away.

Last time I ordered a pizza the delivery guy gave me his business card and said if I am going to be in the market to buy a house anytime soon to give him a call, since of course “the time to buy is now!” I tipped him my standard $1 and said I hope he enjoys being a pizza delivery man for a long time because no ones going to be buying anything from him for a long time that’s not covered in cheese and delivered in 30 minutes or less.

Did they have the painted window ads on all their branches up here like they did in Los Angeles during 2005-2006 for 100k HELOCS with “no income verification”, “no credit check” and “no SSN required”?

The loans up here might not be the ones that crush them.

The loans in California? That I’m not so sure of.

On another note….Has anybody ordered a pizza lately? I have never seen so many older, well dressed pizza delivery drivers. I wonder where they are coming from.

I just withdrew my money from WaMu a few weeks ago. When the teller asked why I was withdrawing I said I was afraid WaMu would go bankrupt. She said they were stable and FDIC insured I said I know but I still want my money.

Who wants to have to take a day off work though to wait in line to get your money when you can go it out now without the hassle. How many here would really be surprised if WaMu is put under fed control by this weekend? I am not trying to cause a run on the bank because not enough people will see this that it will even matter but why put yourself in a position like the IndyMac crowd if you don’t have to.

IMB cost the FDIC around 1/6 of its total arsenal.

WM would cost it in excess of 200%, depending on how fast they act.

See the problem, and why this is a huge deal?

I appreciate your situation. I really do. I also am employed by a complete wreck of a company that is run by morons.

I have looked at your books. You have been booking money that has never crossed your doorstep and calling it income. Go back to your Jan07 10Qs and start there.

I also noticed years ago that you wrote the bulk of the seconds and thirds in the neighborhoods I was researching on Bainbridge. I’m guessing that those will never get paid, as the borrower will be upside down on the primary TD, and your paper will have little, if any, worth when the homes are sold at the courthouse. I am going out on a limb and saying that Bainbridge is typical of the lending practices of WM for much of your market.

Good luck, but please dont attempt to baffle us with BS. The CDS’ on your debt show it to be roughly 50% of the face value, which is positively frightening by any standard – especially for a S&L. Internal mortgage performance information is readily available on Mish’s blog, which shows your last two vintages of mortgages to be performing at a level that will bankrupt any lending institution in very short order. You can’t survive another 10% rollback in prices of the properties you wrote against.

You don’t sack your CEO on “Bazooka Day” unless things are very, very dire.

There is no way to spin WM right now. It is a horror show.

The greatest problem to WM, WB, WFC, BAC, and NCC is how about 12-36 months from now when people walk. Their homes are still worth over 100k less then these homeowners owe. The mkt knows what I have seen. The foreclosures will continue for years to come. These are death stocks. A great trade but if you BUY AND HOLD you will lose.

As crazy as those people calling for F&F to go under for the past few months? Also I am sorry it downgraded from stable to negative BBB- bond status I miss quoted. It is still barely above junk bond status. WaMu has lost 50% of its stock price in the last 5 days as well. If WaMu isnt on the verge of failure then I wish I wouldn’t register http://www.WaMububble.com If you are correct however then this stock is a buyers dream because it appears just about everyone in the market is preparing for it to fail based on its stock price and if WaMu does survive then those buying shares right now are buying at the bottom and will stand to make a fortune and be buying up Seattle real estate left and right as house prices drop 80 %

this is better how?

anyway, yes in trouble, but get your facts right…

some people on here sound as crazy as the non-bubble believers did in 06/07

I’ll give you a hint… it rhymes with “Shamu.”