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There Will Be Blood--Starring... Lehman Bro's...(updated)

By
Mortgage and Lending with 1st Security Bank NMLS #115765

Update: 9/15...Looks like I should have put Lehman in the lead role.  I don't think the FDIC can afford to allow WAMU to go down, they are a hot potato that can really

I spoke with a friend of mine who is a long time WAMU suit.  He has been quietly shopping his resume' for the past year and a half and has found no lillipad to jump to as yet.  Yesterday, he reached the "capitulation point."  Time to surrender his beliefs in the Corporate talking points...he could deny reality no longer.  When the truth is known, there are likely to be no survivors.  His last statement to me was telling:  "I don't know how long the charade will be able to go on, there's going to be a lot of blood!"

If you need to delude yourself by grasping at momentary blips of "positive news" have at it...housing starts, Dow rallies, etc--you will find yourself in good company!  Just don't be surprised when the music stops.

UPDATEWachovia is shutting down Wholesale lending as of this week...earnings report on Tuesday...just some confirmation of the "blood."  Wachovia and WAMU were left of the SEC's protected from "short-selling" list...I wonder why?

Comments (5)

Richard Sweum
1st Security Bank - Everett, WA

Anonymous--thanks for the suggestions on the others movies!  Some were a little too graphic.

Jul 21, 2008 11:39 AM
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

Rich -  people accuse me of doom and gloom all the time... your post my friend    is DEAD ON!!!

For those of us who hope to remain in this business..... strap on your seat belts.. it is going to be a long ride......

Jul 21, 2008 03:22 PM
Richard Sweum
1st Security Bank - Everett, WA

Lewis...I'm all about recovery and extremely optimistic.  But I don't believe that 6 years of craziness and poor financial discipline can be erased with 4 quarters of correction.  The sooner the Gov lets the unwinding occur in full force, the quicker the recovery will be.  Pull a bandaid off fast or slow, it still has to come off...get it over with already!  Quit printing money, allow banks to fail en mass, and lets get put the "REAL" back in "Real Estate."  A house is a home, save to buy it and work hard to own it--end of story.

Just wait, over the next 6 months, there will be shouts of "We have hit the bottom, rounded the corner, turned the page!"  Don't buy it.  Don't even touch it.  

Blessings my friend!

Jul 21, 2008 04:37 PM
Richard Sweum
1st Security Bank - Everett, WA

The Treasury and the Fed Reserve are running out of dry powder!

Sep 15, 2008 04:02 AM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Thanks, Rich. All this shows me is that our recovery will take a little longer. I'm still optimistic about next year. I think it will show we're starting to dig out.

 

Paul

Sep 15, 2008 10:24 AM