Time To Bail Out WaMu?

| About: WMIH Corp. (WMIH)

This can't be good.

As I said, we're playing with one arm behind our back since we cannot short individual names. We could use a nice 25-50% gainer right about now. We missed out on Freddie Mac (FRE), we missed out on a nice Research in Motion (RIMM) call, we missed out on Lehman (LEH) - all names we've called out but can't take advantage of on the short side.

For those not familiar, Washington Mutual (NYSE:WM) is America's largest savings and loan. So now, do we let it fail, do we bail it out (too big to fail?) or do we find a shotgun marriage? Poor Uncle Hank - he has been a busy man. I think they have to arrange a shotgun marriage because funding the $100K FDIC insurance for WaMu is going to empty the insurance piggybank. Hello, Mr Wells Fargo (NYSE:WFC)? Can I interest you in a blue light special we're running on S&Ls?

Some of our recent posts on WaMu.... it's just a matter of when, not if. The market has spoken.