Washington Mutual, WM the next domino

[llepard]

Just heard from sources that WM credit spreads have blown out.


The shares are impossible to borrow and the stock is down 10% today after bening down big yday.

See ya....

 

[Johnnybags]

Looks like another Sunday night Paulson

Just heard from sources that WM credit spreads have blown out.


The shares are impossible to borrow and the stock is down 10% today after bening down big yday.

See ya....

workathon, this is beyond ridiculous. Are we going to buy stock in them as a nation now? This is pre USSR breakup all over again, I just wish 1 state here would try to break away.

 

[Cowlesy]

come on LWL --- you aren't long WaMu??? Lend me some shares!!!

There aren't any available to short that I can find.

 

[jonahtrainer]

Just heard from sources that WM credit spreads have blown out.


The shares are impossible to borrow and the stock is down 10% today after bening down big yday.

See ya....

Stop it you fearmongerer! We all know WaMu is safe and according to FDIC chairwoman Sheila Bair that the opinions of bloggers are dangerous to our financial institutions.

WaMu's credit spread is only at the same level (mid-800's) Bear Stearn's was the day it collapsed and we all know that Bear Stearn's had no problems.

People need to wake up and remove Counter-Party Risk from their assets. Deposits at all banks are subject to such risk.

 

[rockandrollsouls]

Stop it you fearmongerer! We all know WaMu is safe and according to FDIC chairwoman Sheila Bair that the opinions of bloggers are dangerous to our financial institutions.

WaMu's credit spread is only at the same level (mid-800's) Bear Stearn's was the day it collapsed and we all know that Bear Stearn's had no problems.

People need to wake up and remove Counter-Party Risk from their assets. Deposits at all banks are subject to such risk.

Ya, if worse comes to worst we can buy WM stock dirt cheap knowing there will be a bailout and ride it up like people did with Bear Stearns

 

[liberteebell]

workathon, this is beyond ridiculous. Are we going to buy stock in them as a nation now? This is pre ussr breakup all over again, i just wish 1 state here would try to break away.

+2008

 

[bucfish]

WAMU is in bad shape. It is just a matter of time.

 

[Sarge]

Take a look at the 3 about WaMu.

Residential Capital is part of GMAC and then Ford Motor Credit.

Not looking very good.

 

[jonahtrainer]

Take a look at the 3 about WaMu.

Residential Capital is part of GMAC and then Ford Motor Credit.

Not looking very good.

Why do you think on July 24th Ford posted an $8.7 BILLION quarterly loss?

"The recent second-quarter loss includes charges of $8 billion, including impairments of $5.3 billion for Ford North America assets and $2.1 billion for Ford Motor Credit Company's operating lease portfolio."

"Ford reported that total revenue fell to $38.6 billion from $44.2 billion."

All I can say is poofa (Ford), poofa (WaMu), poofa (Guess Who?).

 

[jonahtrainer]

Ya, if worse comes to worst we can buy WM stock dirt cheap knowing there will be a bailout and ride it up like people did with Bear Stearns

I do not know if I would count on JPMorgan being bailed out because of Counter-Party Risk from WaMu. I am not sure who, besides the $150B in deposits (anyone still left is obviously not going to get bailed out), WaMu's big counter-parties are. Anyone?

Yes, it was not Bear Stearns that was bailed out .....

 

[rockandrollsouls]

I do not know if I would count on JPMorgan being bailed out because of Counter-Party Risk from WaMu. I am not sure who, besides the $150B in deposits (anyone still left is obviously not going to get bailed out), WaMu's big counter-parties are. Anyone?

Yes, it was not Bear Stearns that was bailed out .....

What are you talking about? No one mentioned JP Morgan. Bear Stearns was "bailed" out.

 

[JosephTheLibertarian]

Just heard from sources that WM credit spreads have blown out.


The shares are impossible to borrow and the stock is down 10% today after bening down big yday.

See ya....

lol. great.

Another bailout?

 

[jonahtrainer]

What are you talking about? No one mentioned JP Morgan. Bear Stearns was "bailed" out.

You really don't understand what happened do you? Bear Stearns was the counter-party to about $13.5T of derivative risk. If they had gone down then the value of those derivatives would have been seriously impaired. JP Morgan being one of the largest counter-parties it would have required massive losses to JP Morgan. Thus, to save JP Morgan Bear Stearns was sliced and diced, served for dinner and has only caused some indigestion instead of being fatal.

 

[rockandrollsouls]

You really don't understand what happened do you? Bear Stearns was the counter-party to about $13.5T of derivative risk. If they had gone down then the value of those derivatives would have been seriously impaired. JP Morgan being one of the largest counter-parties it would have required massive losses to JP Morgan. Thus, to save JP Morgan Bear Stearns was sliced and diced, served for dinner and has only caused some indigestion instead of being fatal.

AKA Bear Stearns was bailed out. The intervention temporarily inflated the price of the stock.

Please, don't try and tell me I "don't know what I'm talking about." All the information was correct and we don't need a lecture because the way it was worded wasn't "technical" enough for you.

For example. I filled my car with gas. Or, I removed the gas cap from my '04 civic, inserted the nozzle, and proceeded to inject her with 4.38 gallons of regular unleaded gasoline.

You're making a short story long and I'm really not down with the "know it all" attitude. Give it a rest.

 

[jonahtrainer]

AKA Bear Stearns was bailed out.

The ability to communicate correctly with language requires an understanding of what words mean and how sentences are constructed so meaning can be communicated with specificity. Language is technical and words are tools.

The sentence construction consists of the subject (beneficiary) and verb (bail out) being Bear Stearns. The is not correct for the reasoning already stated and JP Morgan was the primary beneficiary. It is nothing like your analogy.

 

[rockandrollsouls]

Beware College Know it All

The ability to communicate correctly with language requires an understanding of what words mean and how sentences are constructed so meaning can be communicated with specificity. Language is technical and words are tools.

The sentence construction consists of the subject (beneficiary) and verb (bail out) being Bear Stearns. The is not correct for the reasoning already stated and JP Morgan was the primary beneficiary. It is nothing like your analogy.

Yea, that's why everyone except you called it a bail out. Schiff called it a bail out. Paul called it a bail out. Wall street called it a bail out. It was a bailout, smart-alec.

But that's besides the point. It already happened and I don't know why you're so hell bent on mistakenly trying to correct wording.

 

[spudea]

without the 29Billion loan from the FED, JP morgan never would of bought Bear Stearns = Bailout.

 

[Paul.Bearer.of.Injustice]

without the 29Billion loan from the FED, JP morgan never would of bought Bear Stearns = Bailout.

JP Morgan is part of the FED, aren't they?

They created the money themselves to save themselves.

 

[forsmant]

It was a bail out of bear sterns counter parties like John says. If bail out means your assets are sold off with large discounts to another bank and your share price tumbles, then you are right. I guess. I would much rather be JP Morgan than Bear Sterns in that transaction executed by the fed.

The Federal Reserve used JP Morgan as a conduit to save Bear's counter parties from holding assets that would have went to zero if Bear Failed. It was a bail out of the other bankers and JP Morgan got a sweet deal from a desperate Bernanke and Paulson. So sweet they had to raise the price later in order to quell the Bear share holders who know Bears building is worth more than the deal would have brought it.

If those derivatives were to be valued at zero, the whole system would have collapsed.

 

[rockandrollsouls]

It was a bail out of bear sterns counter parties like John says. If bail out means your assets are sold off with large discounts to another bank and your share price tumbles, then you are right. I guess. I would much rather be JP Morgan than Bear Sterns in that transaction executed by the fed.

The Federal Reserve used JP Morgan as a conduit to save Bear's counter parties from holding assets that would have went to zero if Bear Failed. It was a bail out of the other bankers and JP Morgan got a sweet deal from a desperate Bernanke and Paulson. So sweet they had to raise the price later in order to quell the Bear share holders who know Bears building is worth more than the deal would have brought it.

If those derivatives were to be valued at zero, the whole system would have collapsed.

First and foremost, the system would not have collapsed like some of you are saying. That's simply an excuse for the intervention. Next, I hope you don't think JP Morgan used their own capital to handle Bear Stearns. It was more of a favor to the Fed as they extended credit they shouldn't have. Fact of the matter is Bear Stearns should have completely failed without any intervention. I can guarantee you nothing would have collapsed except that awful institution. It's all a bunch of nonsense to justify something unjustifiable, and John and Forsmant bought into the hype.

Oh, and by the way, upon news of the bailout the price of Bear Stearns securities actually skyrocketed if I remember correctly. I believe at one time the stock was as low as 5 dollars and doubled when news came of some kind of bailout.

http://www.bearstearns.com/ And, if you read news, you'll see even more proof it was a bail-out of sorts. JP Morgan did not simply acquire assets. They even describe it as a merger. If that's not a bailout, I don't know what is.