Washington Mutual is seized by the US government.

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– New York Times

– Another one bites the dust:

(Sorry for those who have a narrow screen and don&#8217-t see the right part of this big chart.)

According to InTrade, here are the banks that could fail next:

– Bank United Financial

– Downey Financial

External Links About The Big Bailout:

– Reason magazine have collected opinions from the leading free-market economists on the Bailout issue.

There is no reason to expect the correct solution from the same people who created the crisis in the first place and who until very recently thought the economy was strong and that there was little or no chance of recession. [Mark Thornton]

This is a financial coup d&#8217-etat, with the only limitation the $700 billion balance sheet figure. [Yves Smith]

– Mike Linksvayer has some additional good links&#8230- and some strong words, too. :-D

– Arnold Kling:

– NYT:

UPDATE: Paul Krugman

UPDATE: The Manhattan Institute on financial crisis and the Bailout


One thought on “Washington Mutual is seized by the US government.

  1. Medemi said:

    It’s an interesting task to try and pinpoint exactly how we got into this financial mess. And how we can avoid future debacles.

    Some say it’s greed. Hardly. A bit of greed is healthy, perhaps even essential in a competitive environment like Capitalism. After all, it’s a companies’ goal and CEO’s job to create shareholder value. It’s also in our genes. It’s an evolutionarily stable strategy – there for a reason.

    A lack of regulation? Depends on how you look at it. We can have too much of it, or too little. What matters is the quality of regulation. And that is usually lacking. But it’s still not what we’re looking for.

    Because SEC chairman Christopher Cox (to name one) has an incentive to inform congress of anything he perceives as a threat to the stability of the financial system. It’s his job. But he can write until the birds drop dead on the floor, because he won’t find a living soul who is ready to sacrificy his/her career by meddling with a system which has it’s problems hidden under the surface, and is closely guarded by many powerful people. Even if you can find one such politician, he/she would still have to justify his behaviour/actions to the general public, who haven’t got the faintest idea what is going on. THAT’s where the problem is. The political system.

    Even when we (as humans) rid ourselves of greed, and regulate the industry as efficiently as possibe, we’re still left with a structural problem. We need to reform our political system in such a way that there is an incentive for politicans to DO SOMETHING when it’s needed.

    Perhaps we need to have unity in politics, in stead of division, that will control our lives. Who ever asked for division ? Who ever asked for the lies, cheating and manipulation that is inherent with our current way of exercising politics ? Perhaps there can only be long term prosperity when there is unity in politics, when we have a common goal. Currently, we only have it when the shoe has already dropped, when we have a common enemy which is threatening our way of life. If we’re lucky.

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