Who is next? AIG or WAMU

**shatter99** · 09-16-08, 01:58 PM

I was caught off guard with Lehman Brothers, and Merrill Lynch over the weekend.

Now we get to watch the race between AIG and WAMU to see who implodes first.

The Fed tried to strong-arm the big banks into loaning out $40 billion to AIG, but they are refusing to do it. The last I heard Sunday was that AIG has about 72 hours left before it has to close the doors and file for bankruptcy. I read an article this morning that said they lost 52% of thier deposits yesterday with people moving thier deposits elsewhere.

WAMU has $53 billion in potential bad loans, and got rated as junk bond this morning

My money is on WAMU as I think AIG will get a bail out.

**Potemkine** · 09-16-08, 02:44 PM

I think your right. I was shocked at meryl lynch. Absolutely shocked. AIG is a little better placed in the economy than wamu. If I am not mistaken, they are a relative new commer to the game. I honestly had no idea the market out there was THIS bad. Maybe it will be a longer recession than the usual?

**WileECyte** · 09-16-08, 03:35 PM

WAMU on the other hand is ripe for acquisition. J.P. Morgan/Chase is rumored to be buying WAMU. AIG will have a much tougher row to hoe because they are one of the largest insurance companies in the world. It'll be harder for someone to necessarily 'buy' them out of their trouble.

**IceHammer** · 09-16-08, 04:38 PM

They are both screwed....The Fed decided the bailouts are finished. Thats why they let Lehman die. Pretty unreal to see a nearly 100 year old company take a dive.

What does that tell you when companies that survived the great depression can't survive our current situation. = Teh badness.

**shatter99** · 09-16-08, 05:24 PM

What does that tell you when companies that survived the great depression can't survive our current situation. = Teh badness.

It is very easy to explain: Greed kills.

**Arreo** · 09-16-08, 07:51 PM

U.S. Plans Rescue of AIG to Halt Crisis;
Central Banks Inject Cash as Credit Dries Up

**IceHammer** · 09-16-08, 08:02 PM

Ole uncle sam is going to go broke with all these bailouts. FDIC is already broke. This could get ugly.

**JimboIncinerator** · 09-16-08, 08:08 PM

Our taxpayer dollars balling out companies, upsets me.

If I had a business and I made some bad calls and went under, the government wouldn't nor shouldn't bail me out, its not there job. If the government controls companies its not capitalism any more... more like socialism.

If the heads of these companies screw up... they should pay the price, the problem is all the people that invested these firms are going to get hammered. I would call there decision making reckless, giving out loans to people that have not jobs, or no assets is just plain dumb .