Is anyone left to save WaMu?

Thursday, September 18, 2008, 10:42 PM

This was the title of an article from what seems like a hundred days ago.  But it was only Monday.

Tonight we found out the answer.  No.

SAN FRANCISCO (MarketWatch) - Washington Mutual, which put it self up for sale this week, has yet to attract any bidders, the Financial Times reported late Thursday on its Web site.

Potential buyers are reluctant to take on WaMu's huge portfolio of risky mortgages, the newspaper explained.

Link to article.

This just further confirms my view that today's market action was more fake than real.  A stage-managed affair, brought to you by some very concerned public officials. 

And tonight's best summary is found on Barry Ritholtz' blog, Big Picture. I could not possibly say it any better, so why try?


Here is tonite's theater of the absurd SEC headline:

SEC intends to temporarily ban short selling, but it's not clear if the commission has approved the move. Cox is briefing congressional leaders. Separately, the government is seeking congressional authority to buy distressed assets.

This is nothing short of a total panic by people who have no clue what they are doing. And to think, I mocked Russia for being a nation run by market commies.

This is the ultimate bailout attempt, which will have repercussions far, far beyond our imaginations:

1) We suffer a loss of Market Integrity; The US is now a Banana Republic;

2) Blatant market manipulation: this is nothing more than an attempt to force markets higher;

3) 60 days prior to a presidential election? This is a none-too-subtle attempt to influence the elections -- especially coming on top of the Fannie/Freddie bailout;

4) The coming pop will create a huge air pocket, ultimately leading to us crashing much lower;

5) Expect a huge increase in volatility -- upwards first, then down;

We Are A Nation of Morons, led by complete Idiots, making us complicit in our own self destruction.

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1 Comment's picture
Status: Member (Offline)
Joined: Sep 18 2008
Posts: 3
Get out now?
This might be a stupid question, but should one get their money out of WaMu now before they go under?

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