downtoearth

Trying To Find a Buyer for WaMu

TRJ27: maybe you shouldn't stop...even now.

If Mr. Paulsen can establish a new RTC and engender the transfer of WaMu's (and other banks') non-performing loans to the government's balance sheet, WaMu would instantly be a profitable company....in the high millions (almost a billion) per quarter (look at their last SEC filing and check the numbers).

I do find it interesting that although the financial impact on the government would be the same, establishing an RTC and moving "bad loans" into the government's hands has a much softer appeal than writing an $85 billion check here and there...and there again...and then some more.

It would appear like a "good parent" who simply says "I'll take care of it" and does so without the otherwise frightening appearance of writing large, bleeding checks which run the US coffers dry.

And, once the real estate market turns, which it will (or even before that), the government will be in an ideal position to both (1) convert those bad loans into workable loans with the ready assistance of their "left arm" Freddie and Fannie, or (2) sell foreclosed properties with their own new low-interest loans. Both should work wonders to stimulate the real estate market.... where all other banks now fear to tread.

The United States has always been better able to carry long term debt better than any financial institution or industrial or retail company.

They've been doing it since before you were born.

Paulsen's finally getting it right.