Paulson pissing in his pants, WAMU gets whacked and the Dark Knight speaks

I don't think we are going to see any of these anymore.


Paulson is now s***ing bricks now that the bailout deal is starting to crumble and now WAMU has been seized and is being chopped up for JP Morgan to gobble up.

Here's the good news:
Shareholders and some bondholders will be wiped out. WaMu deposits are guaranteed by the Federal Deposit Insurance Corporation up to the $100,000 limit for each account. WaMu customers are unlikely to be affected

I would like to take this moment to share some words from the Dark Knight. Although he is not in finance (Thank God!) he does navigate in those circles and I think we should take it upon ourselves to reflect upon his words. These were part of an email conversation he had with a friend who now fighting tooth nail for his job in the financial world.

Anyway, I don't disagree that the government's takeover of AIG was necessary. And, perhaps missing my point, I did not suggest that this is "common place bush policy." Quite the contrary, the take over of AIG by the government was a radical departure from the free-market orthodoxy espoused by Bush and the corporate-cons of the Republican Party. Additionally, today we learn that the government will be using an additional $500 billion to purchase bad debt from banks and other financial institutions. So, at the end of the day, the government is committing close to 4% of GDP to essentially nationalize the financial industry. Again, I am not suggesting this is not necessary or prudent, only that it is a radical break from current Republican ideology.

And, we hear nary a peep from the choir. Where are the free-market purists among the Republicans saying "No! This is heresy!"? Nope, these guys just go along because well, if the Bush administration is for it, we just trust the government. Now, that is common place. Warrantless wiretapping? Sure, if the government says its required. Torture? Sounds OK to me? Medicare Drug benefit? Umm, ok, if you think it will win us the election. Conservatism is dead.

Anyway, I hope all these guys remember this week when the push for Universal Healthcare arrives next year and they start braying "socialism! socialism!". If the the government can rescue Wall Street, and nationalize insurance and mortgage companies, it certainly is entitled to ensure each American has access to affordable, quality health care. Hey, maybe it can use that shiny new insurance company it just picked up to issue the policies?

His friend's response.

" Well, I must admit I was wrong. I thought the world was better w/ no government intervention/oversight. I supported deregulation like McCain. Now, that being said, I’m not sure government oversight and regulation would have prevented this financial pearl harbor, however its worth a try. "

Then the Dark Knight's friend emailed him these chilling words.

Truly, really, seriously- I am petrified.

'nuff said.