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Federal Bailouts-- wamu next?
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WM has assured the public that they remain capitalized, and it seems as though thats true.
If the another institution fails to which WM has significant exposure, whether in the form of CDO/CDS or direct loans, then the other institutions with similar exposure will be just as big a concern as WM (if not more should the other firms have a Trillion dollars under management [Major Investment Banks].
I think WM is a little too small to get bailed, especially since the Fed just let Lehman fail in somewhat of signal to the street that they will not just bail out everyone.
AIG is still the concern.
Don't forget to Short.
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wow well yeah coming from the guy with the wall street ticker icon.
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Yeah, I think before WAMU went bankrupt, there would be a merger. It's just crazy to hear, they're such a big name up here in WA state.
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There is no way the fed could have let AIG go down they are far too big to have that happen. Shit would have seriously gone down the tubes if that happened
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exactly. that would have drastically messed up our economy so much we'd be in MAJOR trouble. not to mention the economies of other countries. they have over $1 TRILLION in assets. try liquidating a trillion dollars in assets! that would have screwed the world over. as far as a bailout goes i don't think you could call it a "bailout"
talk to their shareholders and i don't think they got bailed out of
anything. their stock is worth less than $2 now. times aren't the same as the depression but it's getting that serious. times are rough/gnarly.
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I understand what you're saying, they aren't bailed out of despair into prosperity. They can't exactly eat, drink and be merry. But they did receive a loan of 86 billion dollars.
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ya, they got a loan but they gave up 80% of the company for that loan as well. bottom line is that the government (or us) (or the world) couldn't afford to let them go down. they have over 70 million clients in like 125 countries or something. we would all be in pretty shitty shape
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Yeah, same with the other banks that were bailed out. I think its a shitty situation though. I don't think that the government should get involved in that way, but at the same time I realize that it is necessary to keep from shit hitting the fan. You're damned if you do and damned if you don't
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no for sure it sucks that it's come to this but seriously it would be a MESS if they didn't. especially with AIG. i work in real estate investements and so you have to know what's going and what not and i think that many people don't know how bad things really are right now. the dow is down another 370 this morning.
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woot. I work in real estate investments too.
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really? that's gnarly. what do you do?
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I used to be a loan officer. Now I work full time as a research assistant at Microsoft, and on the side I work for my brothers company called Eastside Mortgage Solutions, in partnership with Keep you Keys. We propose options to people who are in foreclosure that either allow them to keep their house (by us buying it, and them renting to own it back), or us bailing them out of going into foreclosure by purchasing it from them and then flipping it, etc.
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uh...you didn't answer. i'm a wholesaler for a TIC sponsor
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I did answer, it's in the post above. I just forgot to ask back.
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yo r.e.i."s nows the time to buy buy buy right? Buying at the bottom of the barrel, selling high in a few years if shit so happens to turn around
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Now is a great time to buy, if you have the money, have good credit, can qualify for a conforming or FHA loan, and don't have to sell something first!
Especially right now, because mortgage rates have dropped a ton as a result of the bailouts. 30 year conforming rates are down around 5.5-5.75, and will probably drop a little lower in the next month or so. You can get properties for less than market value right now too.
I'm buying either a condo or a house right now. I have an offer pending on a condo that is a short sale bankruptcy. I have a house in my sights nearby too, if the condo deal falls through.
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oh sorry didn't scroll up enough. right on. a bit different than what we do. sounds cool though. as far as now being the right time. there's no way to make a blanket statement. the market is different everywhere you go. it's tougher to get financing nowadays though. however, interest rates are going down and CAP rates are going up...
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it is def the new black, too bad all our taxes will be raised... I work in the 401k world and the calls we are getting are horrible. People freaking out all day, companies ending their 401ks all day... it is wild
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it's crazy man. it's crazy that it all comes back to the housing industry. a little greed and we all gotta pay for it.
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Wachovia and MoragnStanley are gonna merge, but all these bank closures sound a lot like what I read about in my US history textbook...something about some sorta decade-long, infastructure destroying, world-economy crippling depression sparked by a wall street crash...Damn son scary times, scary times
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