WaMu bank fails

[masterswimmer]

:sad2: The next victim in this awful economic crisis is Washington Mutual. The largest U.S. bank to ever fail.

Deposits are safe if they're under $100,000.00 in one savings account.

Doesn't make it any better for the economy though.

swimmer

 

[jackson6745]

Ahhh crap. Money is safer under the bed these days.

 

[KathyC]

I guess I'll be writing my mortgage check to someone else soon...this is getting rather upsetting...

 

[masterswimmer]

Ahhh crap. Money is safer under the bed these days.

In the mattress. At least the thieves will have to cut up the mattress. The government goes right for our hearts!

Lots of people are gonna wake up Friday and say there is no retirement for them

 

[inkblue]

BooHoo... WAMU ?

 

[Domboski]

They have screwed me so many times...... but I still feel bad

 

[Tangs Rule]

It's not even surprising anymore, but it's still sad.

 

[jejton]

JP Morgan Chase said they will insure deposits over $100,000 so the real losers will be the stock and bond holders. Whats amazing is that the CEO, who's on the job for less than three weeks, gets to keep his severance and sign on packages. I can understand the government's bail out ( in this case at least its not taxpayer funded ) but at least the CEO's and others most responsible should face criminal charges. I mean this was just waiting to happen. I've been saying it for a few years - there's no way you can have ' no credit, no income, no problem ' mortgages being handed out left and right and not have the **** hit the fan sooner or later. Yes I know thats a simplified explanation but its one of the major causes. Number one cause was GREED.

 

[Tangs Rule]

Read this article, it gives some more insight into how the started in 1999, only we didn't realize it yet.

http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon

 

[georgelc86]

I am going to be shunned for this and it will probably affect if people will allow me to purchase from them or buy from me, but I have to say this and see what you guys think. I agree with Jejton, this is capitalist greed catching up to us. The wrong people are getting paid high salaries and the hard workers get paid squat. The rich are getting richer and the poor are getting poorer. I am going to get flamed but I think we need this "collapse" to kinda hard reset a lot of things. As we see already, the FBI is now getting involved and is now investigating investment fraud within these companies that are bombing. I think we need this. I am not a wealthy person and this effects all of us, but I think we need this if it starts to spark a change in practices and instills new regulations that protect the american people. Because of Tyco and Enron, we now have Corporate Compliance. I dont remember the particular incident but we now have whats called HIPAA Laws to protect our medical information. Because of the Great Depression and how banks crumbled during those years we now have FDIC Insurance. The same insurance that is protecting our bank accounts today. The current "war" we are involved with now has pretty much been the principal factor of increased oil prices and it is now forcing the hand of seeking alternative energy. I think we need this.

I am only stating my opinion and I am not going to get into a sword fights with anyone over this due to the sensitive nature of the topic. And if people are truly losing retirement packages because of this new WaMu sell off then thats sad and its shows the government and JPMorgan just dont give two licks.

 

[georgelc86]

Tangs, I just read that article and you know, I am hispanic and I still new better than to try to morgage a home with the money and credit I had at that time. Hell even today I wont do it even though my credit is better and I make a little more money. The last portion of that article read to me that these morgage companies where kinda preying on the desire of minorities to own a home to secure these notes. GREED! Hook them now, hope they get screwed later. I read a little on the WaMu situation and it seems like their problem was they are were originating loans that were optioned base that allowed the payer to push payments back, something to that effect.

 

[Tangs Rule]

George, everyone who said this is about greed is right. And I agree, they are preying on those who cannot afford the mortgage and then giving it to them anyway.

 

[georgelc86]

I saw this thread and other threads closely for a few days and i had to think about my words before I added because topics like this, politics, religion and marine ich are all powder kegs.

I want a home bad. I was thinking about buying Bueller's house that he has on the market, but only if he left the tank behind. I want to be able to renovate stuff and have a yard for my dogs and other dogs, I want a nice pond like the members here but I know that I dont have enough financial security to secure one. These morgages is a classic case of it takes two to tango. Some of these people should have been smarter in knowing that hey I only make 28K a year and why did I just buy a 800K home. And the banks, well, we see where they are headed now because of allowing these decisions.

 

[jejton]

Tangs, I just read that article and you know, I am hispanic and I still new better than to try to morgage a home with the money and credit I had at that time. Hell even today I wont do it even though my credit is better and I make a little more money. The last portion of that article read to me that these morgage companies where kinda preying on the desire of minorities to own a home to secure these notes. GREED! Hook them now, hope they get screwed later. I read a little on the WaMu situation and it seems like their problem was they are were originating loans that were optioned base that allowed the payer to push payments back, something to that effect.

The minority thing is true but only a small portion of the problem. The government wanted to increase home ownership rates among a few groups - mostly minorities and low-income families, and first-time home owners - so they enacted a few programs. Some, like fighting block busting and ended red-lining ( banks basically drew a red line around a lower income neighborhood, usually minority - and didnt give mortgages ) were praiseworthy but others, like allowing people to qualify for mortgages with low to non-existant down payments were irresponsible and started the ball rolling so the gov't has some blame to shoulder as well. As much as I hate seeing these companies being rewarded with bailouts, we also cannot afford to see such large-scale collapses either. Bloomberg took a lot of flak for giving corporations incentives to rebuild in NYC after 9/11. So what happened? Many companies just rebuilt across the river and there went jobs and tax revenue. Sometimes we have to sacrifice a little justice for a greater good. I still think there should be investigations and prosecutions where warranted, and at the least there should be reevaluations of all executive salaries and benefits for companies being bailed out. There is no reason 10 people should keep their 8-10 figure packages while a few thousand people are forced to accept that they no longer have savings, health insurance or retirement packages.

As for the posters that state we should just let the chips fall where they may and things will work out. Unfortunately that hasnt been the case historically. If you study economic disasters ( at least in US history ) over the past 200 years, you will find that those on top usually dont suffer much, and often come out even better afterwards, while a great majority on the bottom suffer greatly since they usually dont have the financial cushion to weather a storm.

 

[Killerdrgn]

As an internal auditor myself, i'm wondering where were their auditors and enterprise risk management people?

 

[aaron23]

being picked up by jp morgan and the transaction settled through the fed........
zzzzzzzz

 

[Killerdrgn]

Well at least the bright side is that i can now access my Chase money from the Wamu down the block from my parents house. Well bright side for me at least :tongue1:.

 

[ming]

Its not just greed of banks.. but greed of home buyers who actually went to the bank to get a mortgage.

 

[cbrsorlo]

Just a spam mail i received which sounds very good.

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free. So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage – housing crisis solved. Repay college loans – what a great boost to new grads. Put away money for college – it'll be there. Save in a bank – create money to loan to entrepreneurs. Buy a new car – create jobs Invest in the market – capital drives growth. Pay for your parent's medical insurance – health care improves. Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG – liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work. But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .

And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam



Yesterday is gone. Tomorrow has not yet come. We have only today. Let us begin.

 

[Killerdrgn]

What sounds really good often turns out very bad in practice.
Think of the inflation that would cause. If everyone all of a sudden came into a lot of money you know people would just spend it all very quickly. (Example: Lotto winners usually end up worse off in the long run because they don't have money management skills. though the banks aren't really doing much better lately.[Besides the point]). If you think it's bad now wait until you start seeing $8 a gallon gas because people were able to afford $4 a gallon. Don't forget supply and demand here.

Just a spam mail i received which sounds very good.

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free. So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage ? housing crisis solved. Repay college loans ? what a great boost to new grads. Put away money for college ? it'll be there. Save in a bank ? create money to loan to entrepreneurs. Buy a new car ? create jobs Invest in the market ? capital drives growth. Pay for your parent's medical insurance ? health care improves. Enable Deadbeat Dads to come clean ? or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG ? liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work. But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .

And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam



Yesterday is gone. Tomorrow has not yet come. We have only today. Let us begin.