WAMU Is Screwed - title pulled directly frim article

Comments

• david_mcmanus

  July 2008

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

  July 2008

  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

  July 2008

  biliruben wrote:

  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.

  I'm thinkin' less than $4 a share.
• sniglet

  July 2008

  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.
  
  http://calculatedrisk.blogspot.com/2008/07/report-wamu-unsecured-creditors-pulling.html
• Robroy

  July 2008

  sniglet wrote:

  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.
  
  http://calculatedrisk.blogspot.com/2008/07/report-wamu-unsecured-creditors-pulling.html

  I keep hearing that Indymac cost the FDIC 10%. That is quite a bit. A few banks failing can be absorbed. The problem is that it could get bigger with each failure to the point that the FDIC is out of it's league.
  
  IOW, It is like going over a mountain pass while towing a trailer. You are watching the temperature guage rise. You hope you get over the pass before the engine overheats. If Wamu goes into receivership, it is a huge bump in the guage reading.
  
  Then we have Wachovia.