What really a gwaan in the USA?

[Willi]

WARNING: GRAPHIC! Controlled Demolition IN PROGRESS -- WaMu implodes, JPMorgan devours carcass

As part of the most far-reaching and spectacular controlled demolition the world has ever seen, one of the biggest banks in America just collapsed as JPMorgan Chase meticulously picks the meat off its rotting carcass.

As the debate over a $700 billion bank bailout rages on in Washington, one of the nation's largest has collapsed under the weight of its enormous bad bets on the mortgage market.
Federal Deposit Insurance Corp. seized WaMu on Thursday, and then sold the thrift's banking assets to JPMorgan Chase Co. for $1.9 billion.

* * *

JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of WaMu's banks, or any assets or liabilities of the holding company, Washington Mutual Inc. JPMorgan also said it will not take on the lawsuits facing the holding company.

Notice that they say NOTHING about WaMu's senior SECURED debt, which Chase is no doubt devouring whole like the rapacious vultures that they are...

JPMorgan Chase said the acquisition will give it 5,400 branches in 23 states, and that it plans to close less than 10 percent of the two companies' branches.

Let this sink into your brain for a moment.
They're aquiring none of its liabilities and all of its assets for a mere $1.9 billion dollars.
$1,900,000,000 divided by 5400 branches is approximately $351, 851.85.
That's an entire ****************ing branch of a commercial bank for less than the price of a one family semi-attached home in a middle class neighborhood in NYC! PLUS - they're most definitely getting all their secured assets for pennies on the dollar as a bonus - no doubt worth billions!
But that's not all - they get all of WaMu's deposits!!!
They get EVERYTHING worth anything and to top it off - they're "buying" all this using OPM (other people's money)!
After all, Chase is a BANK too!
Their so-called money is OUR deposits! that they force US to guarantee!!! (see the FDIC!!!)
What does this all mean?
This comes as no surprise to those of us who understand what the game is all about.
If on the other hand, your head is spinning from watching these so-called 'financial giants' drop like flies one after another, the following sentence goes a long way to explain it all...

The seizure by the government means shareholders' equity in WaMu was wiped out. The deal leaves private equity investors including the firm TPG Capital, which gave WaMu a cash infusion totaling $7 billion this spring, on the sidelines empty handed.

The moneylenders have won again.
Anyone and everyone who assumes risk in the market - i.e., the average working Joe - gets wiped out, while moneylenders get their money PLUS interest (ten times over) GUARANTEED.
Herein lies both the problem and its solution.
Nothing will change unless and until Americans and the world learn that the misallocation of risk created by the private creation of fiat dollars and the accompanying extortion of interest on this monopoly money is the root cause of our financial problems.
http://www.wakeupfromyourslumber.com/node/8312

[Karl]

WaMu on Thursday, and then sold the thrift's banking assets to JPMorgan Chase Co. for $1.9 billion.

* * *

JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of WaMu's banks, or any assets or liabilities of the holding company, Washington Mutual Inc. JPMorgan also said it will not take on the lawsuits facing the holding company.

Notice that they say NOTHING about WaMu's senior SECURED debt, which Chase is no doubt devouring whole like the rapacious vultures that they are...

JPMorgan Chase said the acquisition will give it 5,400 branches in 23 states, and that it plans to close less than 10 percent of the two companies' branches.

Let this sink into your brain for a moment.
They're aquiring none of its liabilities and all of its assets for a mere $1.9 billion dollars.
$1,900,000,000 divided by 5400 branches is approximately $351, 851.85.
That's an entire ****************ing branch of a commercial bank for less than the price of a one family semi-attached home in a middle class neighborhood in NYC! PLUS - they're most definitely getting all their secured assets for pennies on the dollar as a bonus - no doubt worth billions!
But that's not all - they get all of WaMu's deposits!!!
They get EVERYTHING worth anything and to top it off - they're "buying" all this using OPM (other people's money)!
After all, Chase is a BANK too!
Their so-called money is OUR deposits! that they force US to guarantee!!! (see the FDIC!!!)
What does this all mean?
This comes as no surprise to those of us who understand what the game is all about.




If on the other hand, your head is spinning from watching these so-called 'financial giants' drop like flies one after another, the following sentence goes a long way to explain it all...

The seizure by the government means shareholders' equity in WaMu was wiped out. The deal leaves private equity investors including the firm TPG Capital, which gave WaMu a cash infusion totaling $7 billion this spring, on the sidelines empty handed.

The moneylenders have won again.
Anyone and everyone who assumes risk in the market - i.e., the average working Joe - gets wiped out, while moneylenders get their money PLUS interest (ten times over) GUARANTEED.

Herein lies both the problem and its solution.
Nothing will change unless and until Americans and the world learn that the misallocation of risk created by the private creation of fiat dollars and the accompanying extortion of interest on this monopoly money is the root cause of our financial problems.
http://www.wakeupfromyourslumber.com/node/8312

Yuh seit?
Wah bout Wachovia? --- aaaaaah World Savings & its "Pick-A-Pay"/Option Arm? ...dat dere waus jus about di weird-des ave loan dem?
Weh mi fren Jangle deh? ...dat dere bank should be in waussa shape dan waus WaMu?

mmmm????
In all of this...can't help thinking that there is something I am not seeing

Willi: Some comments please?
...also...would love to hear what Don1 thoughts are on this?

[Islandman]

Citi just buy Wachovia this morning.

Now Citi can just send the junk mortgages into the Paulson bailout fund, they are left with the deposits and branches and evrything cris!!

[Karl]

Citi just buy Wachovia this morning.

Now Citi can just send the junk mortgages into the Paulson bailout fund, they are left with the deposits and branches and evrything cris!!

Missed that info!
Thanks!

[Me]

Wachovia failed the minute they decided to buy Golden West (second largest savings and loan institution behind Wamu). They had a hard enough time with their own bad mortgage investments, but once they added that subprime monster to the company things were too tough. Wells Fargo probably wasn't willing to buy when they looked at the company's books and how toxic their holdings were.

Citi, the bureaucratic monster continues to get larger.

[Me]

I really don't think things are much better in Europe. Northern Rock, Bradford and Bingley, Hypo, Fortis. Things not looking too well all over. All Iceland feeling the crunch.

[Willi]

I thought the samfie was obvious....

[Willi]

Agreed!

Even the mighty UBS look shaky, but UBS in the right "camp" with HSBC, ING and Barclays.

[MdmeX]

UBS has a scandal brewing

[Islandman]

Its probably a good idea to keep some cash on hand as these banks work through thier problems, or go belly-up. I know a lot of people who exclusively use credit cards for purchases and almost never have cash.

We probably won't have a bank deposit freeze but one never knows what is possible in these times.
-------------------------------------------------------------------------

Fed takes fresh steps to battle credit crisis

Monday September 29, 10:41 am ET

By Jeannine Aversa, AP Economics Writer

Fed, other central banks takes fresh steps to battle credit crisis


WASHINGTON (AP) -- The Federal Reserve and other countries' central banks announced new steps Monday that makes billions of dollars available to squeezed banks here and abroad to battle a worsening credit crisis that threatens to unhinge the U.S. economy.

The Fed said the action is intended to "expand significantly" the cash available to financial institutions in an effort to relieve to the worst credit crisis since the Great Depression. In taking the action, the Fed cited "continued strains" in the demand for short-term funding.

Central banks will continue to work closely and are prepared to take "appropriate steps as needed" to ease the crisis and get banks lending again, the Fed said.

Under one new step, the Fed will boost the amount of 84-day cash loans available to U.S. banks. The Fed is increasing the amount to $75 billion, up from the current $25 billion starting on Oct. 6. Banks bid on a slice of the loans at an auction.

That move will triple the supply of 84-day loans to $225 billion, from $75 billion, the Fed said.

Meanwhile, the Fed will continue to make $75 billion worth of shorter, 28-day loans available to banks.

All told, the total amount of cash loans -- 84-day and 28-day -- available to banks will double to $300 billion from $150 billion, the Fed said.

Moreover, the Fed will make a total of $620 billion available to other central banks, expanding ongoing currency "swap" arrangements with them where dollars are traded for their currencies. That's up from $290 billion previously in such arrangements.

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Swiss National Bank and the central banks of Denmark, Norway, Australia and Sweden are involved in those swap arrangements.

The move comes as the U.S. financial meltdown's tendrils have ensnared banks in Britain, the Benelux and Germany.

[Rudi]

Agreed!

Even the mighty UBS look shaky, but UBS in the right "camp" with HSBC, ING and Barclays.

In the financial world we now say UBS stands for Used to Be Smart. There's is more to come. Maybe the US should ask Halliburton for a bailout. When the dust settles just look at who's left standing and who owns them and we'll have our answer.

[Karl]

When the dust settles just look at who's left standing and who owns them and we'll have our answer.

mmmmmmmm???

[Tilla]

Karl, I can never understand your use of quote. You quote the entire damn article all the time. It defeats the purpose of the quote feature as you are not point to anything specific in the previous post. I kip wonderin when will yuh get it.

[Willi]

Gold coins better dan cash...if the cash is being debased by an explosion of money supply and spiralling debt.

Gold is over $900 an oz now.

[MdmeX]

Tilla - please refer to this post from Karl

Karl, I can never understand your use of quote. You quote the entire damn article all the time. It defeats the purpose of the quote feature as you are not point to anything specific in the previous post. I kip wonderin when will yuh get it.

"It's Monday...but we call laf hout loud! "


Then you'll get it