Washington Mutual Stock Under Heavy Assault

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The stock price of Washington Mutual (WM) is down another 25% this morning, at well under $3/shr.

There is no way for this company to raise capital, and therefore no way for this company to survive without a bailout. This company is toast. Time to write the obituary.

I am expecting FDIC receivership any day now, perhaps this weekend? Who knows.

Whatever the case, I would not have my money in this institution at this time. I'd find a safer bank.

This is a companion discussion topic for the original entry at https://peakprosperity.com/washington-mutual-stock-under-heavy-assault-2/

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If you have no money in Washington Mutual, but they hold your mortgage, how is that affected? Does the FDIC become the mortgagee?

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That's exactly what happened for IndyMac mortgages...they are now held by the FDIC who is convinced they can do a better job at renegotiating and servicing those mortgages than a private bank.

Maybe, maybe not. But the people holding those IndyMac mortgages that are in financial trouble are getting some really excellent breaks courtesy of the US taxpayer.

 

Chris Martenson, PhD.

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Chris,
I have just finished you series (up to 17c) on your crash course. Thank you very much for that explanation of our dire situation. I knew that we were/are in trouble as a society, I just needed your layman’s explanation of how deep the hole is. I am indebted to your information as are all my friends who found your work stunning.
I am a Wamu customer with auto payments set up. I will look into another institution to switch my banking to for security purposes. Fortunately I am a small account holder with only a few hundred dollars in the account. Either way, it is getting scary out there. I appreciate your voice.
John

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Breaks on interest rates are nice for those in financial trouble, but doesn’t the US’s (FDIC, FedRes, Govt) involvement in bank and FNM/FRE bailouts effectively make it owner of approximately half of all homes in the US? Scary.

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Thank you so much for your skillful eye and gift for explaining the complicated. Do you have an opinion concerning which banks are in the strongest position right now? We are moving our money out of WaMu but don’t necessarily know where to put it. Wells Fargo? Bank of America? Thanks.

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I live in Southern California. My bank is currently Washington Mutual. What banks are stable at this time? Please help! Thank you.

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The Government’s own bank - see http://www.treasurydirect.gov/
But you may not have time to open an account.

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Thanks! I appreciate your help.

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I created the most recent blog posting just for this question.

 

Be sure to check it out.

 

Chris Martenson

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Chris,
Thank you for this information, and all of the hard work. I found out about this, first, from your website. Time to pull the funds from Washington Mutual.