- Washington Mutual stock was worth less than 3 billion dollars. I don't believe that will have an effect on the market. However, who holds the preferred stock, bonds and CDS might cause problems. Psychologically, it does not help as people might start questioning everything.
- It seems the bailout plan is on the rocks. Is this just politics? I don't know, but even as a big believer in free markets I think government action is necessary.
- The bright spot is that there are no more annoying WhooHoo commercials.
- The eerie thing is that when I woke S&P futures were only 13 points below fair value. People are becoming numb to this type of news.
- JPMorgan Chase is raising 9 billion in a secondary offering. More supply.
- Bloomberg reports that California home prices are now down 41% from a year ago.
- There will be good times again. There always are. It will just take time.
The Surreal Life
Good Morning. It seems like once in a lifetime events now happen on a daily basis. Banking behemoth Washington Mutual is now a relic of history. Common stock holders, preferred stock holders and debt holders have been wiped out. JPMorgan Chase will take over the deposits and some branches. The good news is that this will not cost the FDIC anything.