WAMU Is Screwed - title pulled directly frim article

[Robroy]

It is MISH (MIchael Shedlock) on the WAMU situation. Very interesting read with links to supporting information. If the Federal Gov does not step in, there could be a LOT of vacant office space in downtown Seattle.

His take - WAMU has no plans to raise capitol because it is in a classic financial "death spiral".

http://seekingalpha.com/article/86462-c ... -financing

[david_mcmanus]

Stock back down under 4. Nice 40% drop so far this week. Things are cool, though, so says RAL.

[biliruben]

I like Mish (I've been reading him for over a decade), but you usually gotta take what he says and divide by 10. In this circumstance, he's probably right. My guess is they'll be bought. For not very much.

[Robroy]

[sniglet]

So just what would the implications of a WaMu conservatorship be?
Not much seems to have happened now that IndyMac has went bust. In fact, some people are saying this is positive because the FDIC will now be more flexible with loan modifications.

Would we really see much of a direct impact on our local real-estate market if WaMu was siezed by the FDIC?

By the way, I see that unsecured creditors are starting to pulling out of WaMu making their liquidity problems more severe.

[Robroy]