Washington Mutual's deposits exceed the value of the FDIC's trust. JP Morgan purchased them, and the rest of the company will be allowed to collapse. It looks like we'll still be able to avoid the crushing, fatal blow to the entire fabric of American money that closed banks and long lines would engender, for now.
Cooler heads need to prevail in the bailout discussions. Tomorrow will be bad, though maybe not quite so. But if there isn't a deal on Monday, it's going to ugly.
A failure to create SOME kind of deal would be a disaster of indifferent idealism akin to Smoot-Hawley. Let's hope a contentious political process and crushing waves of misinformation, speculation, distrust, and paranoia don't get in the way of the needful.
No comments:
Post a Comment