Time To Bail Out WaMu?

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 (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 (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.