Socialism/Insanity Is On The March (WaMu Edition)

washington mutualLast week, I wrote this:

“When Washington Mutual goes down next week, or the week after, should that big government snotty nose wiper known as the FDIC play its role and make small depositers whole, or should we be left to wipe own our snotty accounts?”

Break out the tissues. It was in fact, “next week”, not “the week after.”

Yes, you know WaMu, that’s the bank with the branches at Lakeside Village and the Winn Dixie shopping center in the Lakeland Highlands, with cute, hip interiors, complete with video games for the kids.

Depositers, otherwise known as people with accounts under 100K, shouldn’t be affected, thanks to the FDIC, otherwise known as the government. Investors and bond holders not so much. “Wiped out,” according to the NYT.

Lord, what will we nationalize next? Best Buy? Maybe we can all go work on flat screen-producing kibbutzes or ashrams. Arise, ye techies, and unite.

Meanwhle, Sarah Palin has the following to say about the proposed bailout:

COURIC: Why isn’t it better, Governor Palin, to spend $700 billion helping middle-class families struggling with health care, housing, gas and groceries? … Instead of helping these big financial institutions that played a role in creating this mess?

PALIN: Ultimately, what the bailout does is help those who are concerned about the health care reform that is needed to help shore up the economy– Oh, it’s got to be about job creation too. So health care reform and reducing taxes and reining in spending has got to accompany tax reductions.

Yes, reducing taxes must be accompanied by tax reductions. And health care reform. Always.

Has everyone gone insane? Am I insane?

Did I really write a politico/economic blog post and not mention the fact that Barack Obama will be debating himself tomorrow night? Or that our dear leader/almost finished president held a “bailout summit” today, bringing together all our major political leaders apparently in the service of torpedoing the very deal he brought them in to agree upon? Or that John McCain said he was suspending his campaign and then never made a pretense of suspending his campaign?

Reality is enduring its apocalypse. What happens when words and phrases become utterly untethered from the hint of meaning? Man, if the Lorax of empiricism were here, it would be time to lift his furry his little behind.

Creative Commons License photo credit: TheTruthAbout…

6 thoughts on “Socialism/Insanity Is On The March (WaMu Edition)

  1. It’s all ridiculous. I’m so sick of the bailouts. When they bailed out the auto industry and the airlines, I Thought, “What? Is this socialism? What?” and it was! it was socialism!

    But do we get health care? no! Do we get the feeling of unity that comes with communism?! No!

    Rich get richer. Poor get poorer. I’m going to eat a steak for breakfast while I still can.

  2. It’s all ridiculous. I’m so sick of the bailouts. When they bailed out the auto industry and the airlines, I Thought, “What? Is this socialism? What?” and it was! it was socialism!

    But do we get health care? no! Do we get the feeling of unity that comes with communism?! No!

    Rich get richer. Poor get poorer. I’m going to eat a steak for breakfast while I still can.

  3. WaMu has been sold to JPMorgan/Chase through the federal intervention. So, the whole comment about FDIC stepping in for anyone with under $100k in deposits doesn’t come into play in this case.

  4. WaMu has been sold to JPMorgan/Chase through the federal intervention. So, the whole comment about FDIC stepping in for anyone with under $100k in deposits doesn’t come into play in this case.

  5. Mike:

    It’s true that the FDIC fund will not pay directly to secure depositers. But that’s not what I said. I said: “Depositers, otherwise known as people with accounts under 100K, shouldn’t be affected, thanks to the FDIC, otherwise known as the government.”

    The sale was only possible because the FDIC was there to seize the bank and guarantee its deposits. Without that, there’s no buyer. And consider this: the FDIC seized the bank and sold it for 1.9 b, minus all the bad stuff. In return, Morgan/Chase gets $307 billion in assets, of which they’ll need to write down about $30 b, if I read things right. WaMu was a government asset sold at an utter fire sale price – $277 b worth of assets for 31b? – again if I understand things correctly. I’m not even criticizing this. I think I prefer this to a direct payout, particularly since we’ll need the direct payout when Wachovia goes down next week or the week after. But to say the FDIC/government had no role in preserving the basic operations of WaMu is simply untrue – though that may not be what you said, either. See? Insanity.

  6. Mike:

    It’s true that the FDIC fund will not pay directly to secure depositers. But that’s not what I said. I said: “Depositers, otherwise known as people with accounts under 100K, shouldn’t be affected, thanks to the FDIC, otherwise known as the government.”

    The sale was only possible because the FDIC was there to seize the bank and guarantee its deposits. Without that, there’s no buyer. And consider this: the FDIC seized the bank and sold it for 1.9 b, minus all the bad stuff. In return, Morgan/Chase gets $307 billion in assets, of which they’ll need to write down about $30 b, if I read things right. WaMu was a government asset sold at an utter fire sale price – $277 b worth of assets for 31b? – again if I understand things correctly. I’m not even criticizing this. I think I prefer this to a direct payout, particularly since we’ll need the direct payout when Wachovia goes down next week or the week after. But to say the FDIC/government had no role in preserving the basic operations of WaMu is simply untrue – though that may not be what you said, either. See? Insanity.

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