The Sleep Time and Rise "n" Shine Thread for 9/25-26/08, Part 1:Washington Mutual Becomes the Latest Victim (and a Refresh)

Photo cred to REUTERS' Lucas Jackson

The bank I have? Gone.

Washington Mutual, the giant lender that came to symbolize the excesses of the mortgage boom, was seized by federal regulators on Thursday night, in what is by far the largest bank failure in American history.
Regulators simultaneously brokered an emergency sale of virtually all of Washington Mutual, the nation’s largest savings and loan, to JPMorgan Chase for $1.9 billion, averting another potentially huge taxpayer bill for the rescue of a failing institution.

As Kos puts it:

Yay, the nation's largest S&L has been nationalized, along with the nation's largest insurance company, and Freddie Mac and Fannie Mae.

The Republicans are well on their way to their goal of a socialist utopia. Who would've thunk it?

JP Morgan chase has already taken over all of WaMu's assets for $1.9 billion. Who knew the "Adidas takes over Reebok" comparison would fit with the situation at hand right now with the banks.

It isn't noted, however, whether the SOP will take the blame for my (and some of yours) bank's collapsing thanks to their pestilent partisan first grader maturation. Or, in simpler, urban East Coast language, "When the (explextive) will they point the finger at themselves?"

A Refesh: Via Kos, here's a fascinating column from the WaPo's James Galbarth. It simply asks the question, after all the investment banks have become regular banks:

Is this bailout still necessary?

Kos adds:

Sure, it doesn't directly bail out irresponsible assholes on Wall Street, and there may be problems with this plan smarter people than me can identify, but it's clear that alternative solutions to a $700 billion giveaway are available and should be debated and considered.

The White House and/or Congress should release the full details of the Paulson presentation so that we (and smart economists) can get a true measure of the problem, and so that saner alternatives can be fully explored.

Saner alternatives, in this country? That is good laugh to this Friday.