In response to Uninsured Depositors At WaMu Are Begging For Trouble I received this comment from Chris Puplava at Financial Sense.
Read your article today and thought you could use the following image for support, which indeed shows Washington Mutual Credit Default Swaps now above the level Bear Sterns was at (mid 800s) when it imploded.
Click On Chart For Sharper Image
Thanks Chris.
That chart shows why it’s important to heed the credit markets. There was virtually no recovery in the credit markets in Washington Mutual (WM), even during the short squeeze lifting nearly all financials, some 100% or more.
Washington Mutual could not hold any of the gains, which is what one would expect when the credit markets are increasing the odds of a bankruptcy at WaMu nearly every day.
If the credit markets do not think Washington Mutual survives, why should anyone else?
Mike “Mish” Shedlock
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