I think the whole story is that the bank was seized today by the gummint, and they sold off the juicy bits.

Whoo hoo!

It's not a free market when the government bails out the losers.

Apparently socialism is just dandy when the rich benefit. But national health care? Too commie-like.

This was no bailout: WaMu shareholders and bondholders will likely get nothing.

Other bank failures may be prevented by with the $700 billion TARP, but not all of them.

I don't believe we're on the verge of the next depression, but it's going to be very hard to defrost the credit freeze. I will be very surprised if 30 year mortgages don't exceed 9% within two years.

When I moved here 14 yrs ago, my college pal, who had already lived here 2 yrs, told me WAMU was the best place to bank. I opened an account there the next day, and have had nothing but good experiences with them ever since. Sad to see them swallowed up.

I've read a bunch of good things about WAMU customer service. I've also been reading about them for a few years now on housing bubble blogs. It's not a surprise to see them go under.

"I don't believe we're on the verge of the next depression"
Some people are slow learners.

You kinda have to wonder if anyone with half a brain is running the ship after that story from Calif. about Wamu giving over 40 mortgage loans to the same couple (with a criminal record) within a year. Something like $25 million worth. And of course the people were nailed for fraud, and Wamu is gonna eat millions.

KISS,

Housing prices are clearly declining at the worst rate since the 1929 depression. That said, many of the analogies to the Great Depression (G/D) don't hold up.

In relation to financial markets:

Brokerage firms are prohibited from commingling client's assets with their own (and there is a $500,000 insurance fund with a $100,000 cash limit from SIPC): brokerage failures during the G/D frequently took their client's assets with them. Not today.

The Federal Reserve's powers were much more limited in 1929, and there was no FDIC deposit insurance.

Brokerage clients had access to much greater leverage than today (2:1 buying power vs. asset value) today versus 4:1 in November 1929).

The market in general (and "investment trusts" in particular) were selling at high premiums to fair value and historical norms.

I can not make a payment on my WaMu Providian credit card, because since the Presidents speech my bank (Rockland Federal Credit Union, Rockland,MA) has locked down all the accounts. There is no way to withdraw or make any payments to anyone. They did however accept the Direct Deposit of my Paycheck yesterday - now that money is trapped too. Good thing I took out Cash last week and have a high credit limit on my Providian Card!

Must have been some speech!

Brokerage firms are prohibited from commingling client's assets with their own (and there is a $500,000 insurance fund with a $100,000 cash limit from SIPC): brokerage failures during the G/D frequently took their client's assets with them. Not today.
I guess you have not heard of derivatives, conduits, and the shadow banking system. None of these things existed in the 20s.

The Federal Reserve's powers were much more limited in 1929, and there was no FDIC deposit insurance.
The fact that you think this is a strength is HILARIOUS.

Brokerage clients had access to much greater leverage than today (2:1 buying power vs. asset value) today versus 4:1 in November 1929).
You are naive if you believe that brokerage clients only have access to 2:1 leverage today. I routinely trade at 4:1 and 6:1. And when I mean trade I mean shorting the 10 year and ^RUT.

The market in general (and "investment trusts" in particular) were selling at high premiums to fair value and historical norms.
Trailing P/E is a joke and earnings expectations are a joke.

Funny how you do not address the single biggest difference between the 20s and now. Americans saved a large fraction of their income. It was common to have a 40-60% down payment on a mortgage. The lack of personal savings, the current account deficit, and massive government debt, make it conceivable that this deflationary crisis could be *worse* than the great depression.

Short bucky!