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[TangMeister]

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@Anonymous wrote:

Indymac went bankrupt earlier. Who's left to takeover WAMU? BOA is busy digesting Merrill Lynch and Countrywide. Chase got help from the Fed to absorb Bear Stearns, and now they are being prodded by the Fed to help out with AIG. Citi has their own issues with survival.

In my subprime days, the small bank I had a CC with decided to get out of the subprime business. They closed my account and demanded immediate payment or else the account would be sent to collections. Luckily for me, the card was secured.  WAMU's stock price is priced for bk. Lehman was the 4th largest investment bank, and they failed. Secretary Paulson has already said that there will be no more bailouts--I suppose the timing of the elections has something to do with that more than economic policy. Frankly, I don't think WAMU will survive or be purchased.

BTW, I have asked WAMU to lower my APR. Of course, they refused stating that they take into account a lot of factors including payment history. I have no lates on my CR at all. They're just full of it. I keep the card because it is my oldest active account. I could try to resuscitate my AMEX giving me an older TL, but I don't want to deal with those people again.

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IndyMac did not go bankrupt...they were taken over by the fed, to be sold to another bank. There's a BIG difference!

[athensguy]

It is junk, and they are trapped in a death spiral contract with regards to raising more capital, but they have enough to live a little while.

[TangMeister]

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@athensguy wrote:
It is junk, and they are trapped in a death spiral contract with regards to raising more capital, but they have enough to live a little while.

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Exactly. And they WILL be bought by someone....and we know who really wants them, and their huge west coast presence.

[TangMeister]

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@Anonymous wrote:

"IndyMac did not go bankrupt...they were taken over by the fed, to be sold to another bank. There's a BIG difference! "

At any rate, the Treasury has said that there will be no more bailouts from them. They still are trying to pull strings behind the scenes to save AIG right now, but no other bank has the obligation to give loans or takeover AIG or WAMU. I hope you optimistic guys are right that we won't see again what we saw today. But the idea behind capitalism is that we are fully responsible for our successes and failures. And it looks like the Treasury and the Fed are going to let capitalism loose for now.

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So very true...lots of behind-the-scenes manipulation going on. BoA and Merril was definitely a shotgun wedding arranged by the Fed. As for bailouts, the Fed lies more than it tells the truth. Let WaMu or another big bank/S&L start to slide fast and see how fast they step in to save them...or at least "back" the deal like they did with BoA and Countrywide. They're just talkin' to hear themselves speak.

I'm not very optimistic to be honest. WaMu is going down the drain, but will be bought...but who knows what the final deal will mean to us? Lehman was not a bank or S&L, so they could be thrown to the dogs, bankrupt and liquidated/reorganized, and the financial markets recover and get through it. What about Wachovia? They're in deep trouble as well.

Citi has $1.1 trillion in off-balance sheet assets with a hefty amount of junk setting there waiting to be wrote off when they can afford to (ever?), so they're in deep doodoo as well, and won't be the huge power player they once were when this is all said and done. They're going to have to raise some serious $$$ to get through this...which means asset sales most likely...selling off parts of the company and shrinking. Wow...that must hurt those big corp exec egos at the top.

Which sort of leave BoA and Chase as the big dogs based here in the US. This is getting more interesting by the day.

Message Edited by TangMeister on 09-15-2008 04:56 PM

[Anonymous]

The difference between Citi, WAMU and Wachovia is that Citi has stuff they can sell off like they're looking into selling off the insurance side like Primerica, Travelers and all that stuff.

WAMU and Wachovia is pretty much dead fish.

[Uniqua]

If WaMu goes bankrupt, people will still be here on myfico.com talking and talking and talking and tallllk...ing. Oh sorry, dozed off for a minute -- AND TALKING!!!!

It hasn't happened yet, people, if at all it is going to happen. There's nothing you can do. So, until that time, continue utilizing your WaMu CC and PIF'ing every month.

[Uniqua]

Sounds like you already had the answer, so why did you ask the question?

My point is this -- nobody knows for sure what is going to happen with WaMu so why waste time going back and forth trying to prove who is right? In due time, we will know. Spending a lot of time speculating about it can put you on "paro" and for no reason. It is a very good idea to keep balances low, preferably balances that are not being carried. Even if you have a 0% APR for an introductory period, WaMu hates it when we carry balances. They prove it with the countless rate jacks.

Message Edited by Uniqua on 09-15-2008 09:24 PM