Tuesday, September 16, 2008

News blackout

The various econ & financial blogs and news sources have been following WAMUs troubles daily. Basically it looks like WAMU may die as soon as this week, maybe next Monday. At the least it will probably declare bankruptcy. Those in the know seem to poopoo talks that they will be bought (noting that their assets are worthless).

Which made me curious. Why aren't the Seattle Times or PI reporting any of this? I couldn't find much of anything online beyond the CEO change and the obligatory puff piece.

WTF?

2 Comments:

At Tuesday, September 16, 2008 6:24:00 PM, Anonymous Not TM's Fiance said...

Even with the down grade from S&P today to junk - S & P stated that WAMU has the liquidity to survive and cover holdings through 2010, which WaMu as confirmed as well. I also heard that they are going to split the bank into 2 and well...you can infer what will happen then...one survives and one goes away.

 
At Tuesday, September 16, 2008 11:26:00 PM, Anonymous mt said...

true.dat....WaMu's only real move here is to cut out the rotting meat and nurse the remaining part back to health. Same goes for AIG.

Uh oh, pointy hair speak alert!

I believe the term is "restructuring".

The problem I see is that it is going to be tough to sell off assets that are crap. Along these lines, I'm really surprised BofA made the move they did in buying Merrill Lynch. Maybe they think their exposure is minimal (uh,Countrywide? Consumer debt?) so they felt it was time to bargain hunt?

What Ken Lewis sees as "deal of a lifetime", the market sees as really risky leaving many to scratch their heads.

You know, as I look at this, hiding money under my mattress is becoming mighty appealing.

 

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