We've got a Wachovia down

rose-colored-coolaid

Speculation that Wachovia was next appears to have come to fruition.

Things seem to be failing at a pretty quick rate now. Last summer was a couple hedge funds, then Bear Sterns in the winter, then some smaller institutions. But since August we've seen Indy Mac, Freddy and Fannie, WAMU, Wachovia, Lehman Bros, AIG...and probably some other biggies I can't remember.

Anyone still believe the subprime problem is contained?

Also, who's next? It's good to know what's coming.

Charles Dean

Just like the depression, we're just having old fashioned runs on the banks. Once one fails, everyone starts asking what the next one is. The rumors start, then it happens.

rose-colored-coolaid

I expect to see some version of the following story by this winter.

Man loses deposit he thought was insured when banks merge.

In middle america, Joe Smith lost $80,000 last week when Citibank failed. Following FDIC suggestions, he had opened savings accounts with Citibank and Wachovia. When Wachovia was bought out by Citibank, he failed to find a new bank to store his deposit over $100,000 at. Later that same week when Citibank failed, he learned of his mistake.

"I thought I might need to move the money," he said, "but I figured it would be safe for at least a couple weeks!"

Charles Dean

I totally agree with you. Thus again one of the problems with the deregulation and allowing corporations to get so enormous.