Washington Mutual going under:

I was right ... then I was wrong.

Plunged to $3.25 then proceeded to do a casual 20% plus rise to voer $3.95 in less than one hour.

However the stock is more and more like a $0 strike price call option .... especially given the following:

EW YORK, Sept 8 (Reuters) - The cost to insure the debt of Washington Mutual Inc (WM.N: Quote, Profile, Research, Stock Buzz) hit a new record on Monday, more than reversing gains made in early morning trading, after the U.S. savings and loan ousted its chief executive and was put under special regulatory supervision.


WaMu's credit default swaps jumped to 28 percent on an upfront basis,
meaning it costs $2.8 million to insure $10 million in debt for five years, in addition to annual payments of 500 basis points, or $500,000, according to broker Phoenix Partners Group.

The swaps traded at 26.5 percent upfront on Friday, and fell to 23.5 percent upfront on Monday morning, according to Phoenix. (Reporting by Karen Brettell; Editing by Jonathan Oatis)
 
WaMu debt protection costs hit record-Markit

Tue Sep 9, 2008 10:14am EDT

NEW YORK, Sept 9 (Reuters) - The cost to insure the debt of Washington Mutual Inc (WM.N: Quote, Profile, Research, Stock Buzz) hit a new record on Tuesday, a day after the U.S. savings and loan ousted its chief executive and was put under special regulatory supervision.

WaMu's credit default swaps jumped to 31.5 percent on an upfront basis, meaning it costs $3.15 million to insure $10 million in debt for five years, in addition to annual payments of 500 basis points, or $500,000, according to Markit Intraday.

The swaps closed at 29.94 percent on Monday, Markit data showed.

(Reporting by Karen Brettell;Editing by Chizu Nomiyama)
 
LET WAMU BURN.

If the government bails it out (notice I did not say if 'we' bail it out), the national debt will rise again, and the market will not be allowed to recover on its own.

When the Fed and Treasury tamper with economic cycles, they are merely delaying a harder fall during the next cycle. They are not making life easier for anyone in the long run.
 
trading more and more like a $0 strike call option.

I think the decline from $2.80 to $2.30 may have been prompted by David Faber mentioning the stock
 
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