Thursday, September 25, 2008

Stick That in Your Eye...

...Congress.


Reportedly, the unexpected federal FDIC take over of WM will leave no value to either shareholders or bondholders. Will taxpayers notice that another $2.5 Billion in market cap has evaporated from their S&P 500 401-K holdings in the morning? The largest bank failure in our history, and the country's sixth largest lender, I believe.

Hey, it's all Wall Street guys after all... (wait a minute, isn't WaMu out here in the Pacific Northwest?) And your constituents are overwhelmingly furious with this bailout, aren't they... (WSJ: 33% Against/ 30% For?) Take your time guys, we all want to be assured that you "get it right."

That sure worked well when you set these wheels in motion with the passage of the 1999 credit easing. Talk about unintended consequences. And special good work to the credit agencies that downgraded the firm yesterday and today. My personal kudos to you.


o US Seizes Washington Mutual
o JPMorgan to buy WaMu Assets
o WM After Hours
o Obama Says More Work Needed
o McCain Gambles
o Additional Details

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