User 12704

WaMu’s Cards: Restructuring Is About the Only One Left

I agree with most of the follow-up comments I have read here. The Kirchner blog ignores several facts and seems to focus on the worst case scenario. Of course, there are perfect storms. But saying that it is the most likely outcome is disingenuous. While TPG may have made a mistake, my guess is that they did a little more homework than Mr. Kirchner before dropping $7 billion into WaMu. I do give the guy credit for at least admitting that he is short the stock.

WaMu and More: Uninsured Depositors Begging for Trouble

It is not wise to hold over the FDIC insured limit in any financial institution. It is possible to avoid going over the limit by having mulitiple accounts of various types. That said, it appears that this article/blog is short on substance and designed to fan the flames. Does the author have a short position? I have no idea. Does he want to attract attention with his chicken little stance. Absolutely. But rumor mongering has became a dangerous game these days. As it stands, some of those who were responsible for causing the run on Bear Stears are under investigation. By the way, if you are looking to be careful, you may want to worry less about your bank account and more about your money market fund at the brokerage. Depending on the vehicle, some of those carry absolutely no insurance. And if you look at what kind of instruments they are currently holding to generate your 3% return, some of them are downright scary... CDO's, et cetera.