Washington Mutual, WM the next domino

[forsmant]

Bear was counter party to contracts that indirectly affected more than $2 Trillion in real estate assets. Those assets would have been valued at zero if Bear was allowed to go bankrupt. THe entire banking system would have been in danger of failing.

It was a bailout of the counter parties to Bear's mortgage derivatives contracts. They are the ones getting the break. If bear went bankrupt those contracts would have been worthless and banks would be writing down billions of assets down to zero.

The fed bailed out Bear sterns in order to prevent the counter party contracts from going to zero.

 

[JSCHAFER1337]

Back to WaMu, how long do you give them before TSHTF? A week? A month? A year? Whichever it is, I need to get my $$$ out of that place fast.

 

[rockandrollsouls]

The fed bailed out Bear sterns in order to prevent the counter party contracts from going to zero.

That's all I was looking to hear . All of that nonsense just to end up at what I said in the beginning.

And, I still think Bear Stearns should have gone under and taken any other firms that dug themselves in a ditch with them. It's the only way you truly cleanse the marketplace.

 

[cien750hp]

Back to WaMu, how long do you give them before TSHTF? A week? A month? A year? Whichever it is, I need to get my $$$ out of that place fast.

i don't think anyone probably knows, only going the safe route of getting money out immediately is the best option. though i'm sure they'll hold off any announcement till a friday like usual

 

[jonahtrainer]

Back to WaMu, how long do you give them before TSHTF? A week? A month? A year? Whichever it is, I need to get my $$$ out of that place fast.

Soon. The WaMu CDSs are trading at the same rate (mid-800's) as Bear Stearns the day they collapsed. Beware.

 

[FrankRep]

I'm gonna buy some WM at $3.84. I have a strong feeling that JPM will buy them out.

 

[rockandrollsouls]

Soon. The WaMu CDSs are trading at the same rate (mid-800's) as Bear Stearns the day they collapsed. Beware.

I wouldn't touch financials either way....especially based on coincidence. If research paid off in this market of ours you could be sure the security would go to $0. However, you have to worry about the possibility of government intervention, new regulations from the SEC, and all of this other garbage that makes any play on financials a shot in the dark. I made out with my gambles but I wouldn't test the waters again.

If things were truly right, Fannie and Freddie wouldn't even be trading anymore.

 

[Fox McCloud]

If things were truly right, Fannie and Freddie wouldn't even be trading anymore.

if things were truly right, JP Morgan would have collapsed in the early 1900's due to his eagerness to give out loans to any European country that moved. And really...I doubt any of these big banks would exist.

 

[cien750hp]

even thing were truly right, JP Morgan would have collapsed in the early 1900's due to his eagerness to give out loans to any European country that moved. And really...I doubt any of these big banks would exist.

if things were truly right, we wouldn't be sitting here talking about if things were truly right

 

[Fox McCloud]

if things were truly right, we wouldn't be sitting here talking about if things were truly right

touche'.

 

[Liberty4Free]

Well, if this is for sure, let a brother know. I need to pull my money out then.

 

[Bryan]

So what's the best course of action for someone who has a loan / mortgage with WaMu but not deposits?

 

[jonahtrainer]

So what's the best course of action for someone who has a loan / mortgage with WaMu but not deposits?

Not sure I would worry about it as you have their money. If there is a failure and a new creditor comes asking for money saying they bought the debt then make them prove it.

 

[Cowlesy]

I want to buy-to-cover on my merrill short, but I am afraid if I do I won't be able to short it again later due to availability.

Anyone else having trouble to find financials stocks period to short?

 

[JosephTheLibertarian]

Well, if this is for sure, let a brother know. I need to pull my money out then.

Your $4.23?

 

[Paul.Bearer.of.Injustice]

WaMu's failure may the spark that sets off the bank runs.

Is it "too big" to fail?

 

[Liberty4Free]

Your $4.23?

Not a bad guess. I've got a little more than that though.

 

[Fox McCloud]

WaMu's failure may the spark that sets off the bank runs.

Is it "too big" to fail?

The FDIC nationalized IndyMac; it was "too big to fail"....WaMu is just a little bigger than IndyMac (hint: sarcasm detected). Either way...as an economist friend of mine put it "You'll be able to get your money-eventually, it just won't be worth as much."

What's scary is that if this keeps up it gives the government the potential to nationalize all the major banks, which would be a sad (but important) step to never getting control of our money back.

 

[buffalokid777]

Well, if this is for sure, let a brother know. I need to pull my money out then.

Run, don't walk, to your nearest WaMu tellers window and GET IT OUT before you are singing the IndyMac blues.......

 

[cien750hp]

Your $4.23?

every true patriot keeps a full $17.76 in their bank account