Tuesday, September 9, 2008

Who Will Fail First? Lehman or WaMu?

In July, IndyMac became one of the larget banks ever to fail. Since then, there have been several smaller banks to go under as well.

But now everybody awaits the collapse of a couple more biggies. Who will fail first? Lehman or WaMu?

As mere bubblers even we knew before it happened that the announcement of a Fan/Fred bailout was imminent back in July. About two weeks before Labor Day, we started our Countdown. It just took a few days beyond the holiday before the takeover finally happened this past weekend.

Now we're waiting for some biggies to collapse, not to be rescued. We have a Deathwatch going in our sidebar. Each day we'll have the latest under the skull and crossbones.

Today, Lehman tanked by 45%, WaMu by 20%.

If you've been distracted by Fannie & Freddie, here are some links to catch you up:

MarketWatch: Standard & Poors cuts WaMu's Outlook to Negative
MarketWatch: Lehman Will Announce Q3 Earnings 7.30 a.m. Wednesday After Today's Disastrous Results
CalculatedRISK on how much it will cost to insure WaMu's debt

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