MikeW

WaMu and More: Uninsured Depositors Begging for Trouble

Disclosure: I'm long WM at the moment. At the moment being the operative phrase. The legitimate, long-term investors have left the building. I see relatively little downside risk ($3.91 to 0), and decent upside opportunity ($3.91 to $6) so what the heck. When the housing bill passes, or when the SEC bans short-selling across the board, there may be a short squeeze that will make me some money. I've been one of those shorts in the past, and reserve the right to be in the future if it isn't banned. Who knows WaMu's future. I know they took huge risks and are paying a price for it. I closed my account there a year ago because they had a savings account promotion that assumed depositors were as stupid as their borrowers. After I spent 20 minutes filling out forms they said would take 5 minutes, I ended up with a 0.5% savings account when they had offered several %. If they go down, they deserve it,
if they don't, recent shareholders can make a few bucks. Those who have held their shares for a long time, sorry.

Mish tells it as it is, as always.