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Wednesday, September 17, 2008

You may be about to own another company. Do you feel rich yet?
Posted by Jill | 7:24 AM

Someday, son, all this may be yours.


You already own an insurance company. How about a bank next?
Washington Mutual (WM), a company that once considered itself the Starbucks (SBUX) of banking, now has a stock price lower than that of a latte.

Shares of the Seattle company, the nation's largest savings and loan, fell 27% on Sept. 15, to $2 a share, following news that other struggling financial-services giants Lehman Brothers (LEH) and Merrill Lynch (MER) had succumbed to the mortgage meltdown. WaMu shares rose 16% on Sept. 16 to close at 2.32 as investors responded to rumors that banking giant JPMorgan Chase (JPM) may make an offer for the company.


And if JPMorgan Chase does not? How much worthless cash is Paulson going to print up to prop up this one?

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1 Comments:
Blogger Charles D said...
It struck me this morning with the AIG news, that the link between corporate power and the government is now out in the open where everyone has to see it and acknowledge it. We have openly achieved Mussolini's definition of fascism. Of course it appears we have a bankrupt version, but I'm sure that once there is some chance of profitability in Frannie, AIG and the others, the taxpayer will relinquish these "assets" back to their private owners and take a gigantic loss.