Just The Facts

Did the FDIC Sabotage WaMu's Management and Erode Investor Confidence?

I agree. The courts will overturn this "seizure". It violates the 5th Amendment.


I also found it interesting that the bailout bill has language saying that banks cannot sell their troubled assets to the taxpayers at a profit, but makes an exception for assets received through a merger or buyout (meaning that JPM will be allowed to sell WAMU's assets to the Treasury for a nice profit, AFTER the FDIC basically gave the assets to JPM for nothing). It simply boggles the mind. The government seizes private property, gives it to a corporate friend, and then buys it back from said friend at a higher price. Wow!

Chewing on the FDIC List of 'Problem' Banks

They were right, and you are right.

As one commentor said in response to your original post, the key would rest in whether or not you believe the data being provided by the government (for starters).

More telling is your statement above that "it should be noted that IndyMac failed and it was not on the problem list at the end of the first quarter". I'd be willing to assume that's correct, although I don't know.

And ANY data you're looking at most certainly doesn't consider the total collapse in value of all FNM and FRE preferred and common stock, or the change in Lehman's situation yesterday.

We're in a highly fluid situation here, where information that is more than 24 hours old or so, probably shouldn't be relied upon for making investment decisions.

Buy some gold, if you can find any. That's all I'll say.

:)

WaMu: Speculative Value Play

Oh. And I'm hanging onto that gold I have buried in my friend's yard.


Just in case I'm wrong!


;)

WaMu: Speculative Value Play

I agree with the previous poster that said fortunes are to be made now in our financials. Diversification is key, as always. Basically, I view it as a bet on whether or not America survives. I've decided to bet a little of my money on America.


As the nation's largest thrift, WM is on my "buy" list. And especially so, at 10 cents on the year-ago dollar. To protect against individual failures, I'm spreading my investment over quite a few financials that are now available for 5 to 10 cents on the dollar. If they ALL fail, then any equity investment is worthless and nothing will matter anyways. But if our financial system recovers and our nation survives, then this is a "once-in-a-lifetime" opportunity for the average investor to get rich. Each surviving business will pay out 3 to 5 times as was lost on each business that went under. Short a total collapse of our entire system, this is a "no brainer" investment!


Of course, I think shorting opportunities still exist today in our financials. They could be played as a "hedge" against financial Armageddon, if one were so inclined. Just look for names trading at MORE than 10 cents on the year-ago dollar. And the higher, the better!


:)

Looming Wave of Option Repricing?

I agree, farmer.