Friday, September 26, 2008

Washington Mutual blew up.

This is really frustrating. Wamu blew up, but we couldn't short it because our Stalinist market reforms have banned it. Did that work? Did that prevent Washington Mutual from going bankrupt? Did it keep the stock from going down?

If we go back to August 18th, we'll find my post entitled "Washington Mutual is going to blow up or come close to it" which I think today teaches us that no matter how much executives, PR personnel, or the Treasury Secretary lie to you, you can always find out how a business is really doing by how it facilitates business with its customers. We're now two-for-two here, so if your bank increases the rates on its CDs or any other investment structure, it is apparently time to close out your savings accounts (and any other business dealings you have with them) and head for the hills.

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