September 26th, 2008

Money

BIGGEST BANK FAILURE IN HISTORY

OMG they killed Washington Mutual! The bastards! Or was it a suicide? Natural selection? Whatever it was, JPMorgan buys WaMu (CNN). This is actually not so bad. If it had filed for bankruptcy protection, people with outstanding balances might have found these terminated and due for payment within a short deadline. Obviously the government can't have that right before an election, so Morgan got WaMu on firesale.
Lift your pinkies all who were surprised.

In other news, the so-called "bailout plan" has stalled according to the latest news I have, and European stock exchanges open sharply down. This looks like a great buying opportunity, since there necessarily will be some kind of agreement in the very near future. This will with near-divine certainty cause a sharp rally, followed by a correction when people sell off their temporary stock holdings, and then the slow and uneven decline will continue. It's not like America has been hit by a nuclear blast, or the bird flu or something. The assets are still there. The people are still there. The ideas are still there. It's only the imaginary money that is evaporating.