Wednesday, September 10, 2008

WaMu Trembles

Uh oh.....Looks like the Fed may get to add Washington Mutual's debt to its toxic mortgage balance sheet as well.

http://www.cnbc.com/id/26641953

At least the Fed can always turn to the FDIC with its strong balance sheet. It has about $50 billion available to guarantee $4.3 Trillion in bank deposits. (That's your money at the bank) They'll probably be busy dealing with some problems so the Fed better leave them alone.

So, it's back to the treasury. Maybe good old Hank Paulson won't mind picking up Washington Mutual and Lehman and just merging them with Fannie and Freddie.

1 comment:

  1. The Fed is fucked. Theres no going back now. And if the Fed is fucked, then were fucked.

    Someone out there through on some biggie and spark a blunt cause this shit aint right.

    ReplyDelete