WAMU Goes Belly UP

[falcon]

This is by far the biggest bank failure in US history.

Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse the $40 billion of Continental Illinois National Bank, which failed in 1984, and the $32 billion of IndyMac, which the government seized in July.

http://news.yahoo.com/s/ap/20080926/ap_on_bi_ge/washington_mutual_future;_ylt=Am4g4GN8PUx77D1fvYs2 7kus0NUE

[Fieldmouse]

So the real question is will JP Morgan's stock just completely take off when the storm is over? They have now gobbled up some of theleftovers from another failed institution. I have to believe they are loading up on cheap undervalued stuff because they can. I look forward to hearing some ofthe input from those on this board who play with the money everyday.

[fodderblade]

Washington seems determined to continue the bailouts at all costs - to the taxpayers - to avoid being forced to admit we're in a recession.

[Arthur P]

Ooooo! You said the "R" word![:-] Paulsson and Bernanke are gonna wash your mouth out with soap.

[Champlain Islander]

ORIGINAL: fodderblade

Washington seems determined to continue the bailouts at all costs - to the taxpayers - to avoid being forced to admit we're in a recession.

We wish that is as bad as it gets. The d word will be the next milestone if things don't stop going south.

[Fieldmouse]

ORIGINAL: Champlain Islander

We wish that is as bad as it gets. The d word will be the next milestone if things don't stop going south.

Don't we have to get to the recession first?

[Big Duane]

people on this very board still think we're in a strong economy[&o]

[Champlain Islander]

Sorry FM but I think we passed that one a while ago.

Effects of recessions
[ul][*]Bankruptcies[*]Banks lend less money [*]Deflation[*]Foreclosures[*]Reduced sales [*]Stock market crash[*]Unemployment[/ul]


All of the above have gone through the roof. I suppose the degree of failure can govern what some people say is a recession. I have been on this planet since 1948 and this period of time is about the worst I have seen economically andI thought the Carter years were bad. One main difference is the inflation we experienced at that time. That will come as the dollar continues to plummet and our national debt rises. I feel we are in a recession andbecause of politics and the elections the government wants to skirt around the issue. Call it what you will but the average person is not better off now than they were a couple of years ago. People on the upper end of the income scale are hurting in their own way too, I can assure you. It doesn't matter if your 401K is down 4 K or 4 M. It still hurts no matter how much has been lost. I do feel that we will come out of this funk given some time. I don't believe we will have an economic recovery until well after the new president is inaugurated.I personally am down a ton of money but understand that it was money I made during good times so it is in effect "œfound money."� Luckily my financial people saw it coming and we moved most of it to more conservative investments. Had I not done that I wouldbe down more than double.