THE BIGGEST BANK
FAILURE IN US HISTORY
LAST YEAR TIGERSOFT WARNED YOU WAMU WOULD FAIL.
WHAT WERE THE SIGNS OF ITS IMPENDING
Get TIGERSOFT To See Which Banks Are Next.
by William Schmidt,
The lessons of WAMU's crash are clear: Use TigerSoft's
studies of Insider Trading.
Do not trust over-paid CEOs. They conceal the truth about their companies.
They insider trade.
Too often, they are unindicted criminals, who have no qualms or guilt at stealing your
TigerSoft's measures of insider trading made it clear last year that WAMU
was being heavily sold by insiders, not just above 40, but all the way down, despite
news stories which mislead many traders and investors, who kept trying to call bottoms
all the way down from 45 to 35 to 25 to 15 to 10 to 5 to 4 to 3 to 2 and to zero.
decline and the insider trading and CEO lies are mpre typical, than exceptional.
Your best way to learn the truth is to use TigerSoft and read our TigerSoft Blogs
More banks will likely fail. They have used leveraging and obfuscation to sell their
toxic, sub-prime mortgages to investors around the world. Housing prices are still
The end of the Glass Steagall law in 1999 allowed commercial banks to package their
poorer quality mortgages and sell them to others, take the money and loan out still
more such loans, all the while concealing the risks if housing prices stopped bubbling
The Republican ethic of de-regulation guaranteed this apolcalyse. The regulators
sat idly by as the housing and banking bubble frew and grew.
Both Democrats and Republicans Are Responsible.
The sinister effect of the Big Banking Lobby with both political parties should frighten
all Americans. The Democrats and now Obama are heavily influenced by Robert
of CitiGroup and Larry Summers. Republicans and McCain are heavily influenced by
Phil Graham - until recently McCain's most important economics' advisor and the key
architect for banking's deregulation in 1999 and Rick Davis - McCain's campaign manager
an important lobbyist for Fannie Mae.)
Appeasing The Bankers Won't Work, Either.
Readers may be interested in my take one what has gone so wrong.
September 21, 2008 Monopolistic
Finance Capitalism and Wall Street Are Dangerously Out of Control.
September 19, 2008 Bush Corruption
and Cronyism Reach Dizzying Heights in Paulson's Plan
for US Tax
Payers To Spend A Trillion Dollars Buying Worthless
Private US Banks. Someone Must Say "NO"!
September 18, 2008 The Greenspan
"De-Regulation" of Banking, by Abolishing the
1933, Has Led Directly to the 2007-2008 Bear
Both Political Parties Are To Blame.
Neither Admits This To
The tragedy is that so many investors are going to be wiped out. "All my savings and
all I owned in my life does hurt to see it going away. I didn't sleep from last
what to do next and can't help not thinking what happened to me. Is this
I feel ashamed of myself and for the first time feel death is better verses facing this
Yahoo Message board on WAMU.
Sometimes, I think these shareholders were blind and trusting sheep
They were exploited by the worst people on Wall Street. They could have known
All they had to do was Google "WAMU" and "Insider trading" and they
across our dire warnings about this stock. These warnings started last year!
suggest, readers Google "Tigersoft" and their stock or the subject they are
You don't want what happened to WAMU to happen to your stocks.
JP MOrgan will now own WAMU. Deposits are safe. By FDIC order, WAMU was
taken over. All WAMU equity was destroyed in the bargain. No long line - but
country's biggest bank failure. Killinger (rhymes with 'Dillinger') was the CEI of
Washington Mutual until last month. He got $14.1 million in 2007 and over $54
from 2002-2007. He milked WAMU for all he could. He took it headlong
into the toxic
world of leveraged high-risk mortgages. In the process, he lied over and over
soundness of the company and wiped out the investments of a lot of people who were
too trusting and easily mislead.
WE PRDICTED WAMU WOULD GO
lost nearly $1.9 billion in the
fourth quarter of 2007. Some believe it could lose $7 to $10 billion in 2008.
bank will then be bankrupt." I reported that
WAMU's CEO was clearly taking as
much as he could, while he could, from the company. He paid himself $14.3 million
in 2006. And between January and May 2007, he sold 129,000 shares of WM
between 42 and 45.31. In November 2006, he sold an additional 50,000 shares at
Clearly, he knew there was a high probability his company and its stock were about to
It should be noted that Killington and Washington Mutual had been sued before for
insider trading. http://securities.stanford.edu/1031/WM04-01/20040720_f01c_SouthFerryLP2.pdf
Back in this December Blog, I wrote: "TigerSoft spots insider selling mainly by
watching the Tiger Accumulation Index. Its dropping below -.25 when the stock is
under-performing the DJI (representing the general market) is the primary way we do
this. The reddish-purple lines show these points in this chart. When the
Black TISI line (6/6/2007)
drops into negative territory and the stock has closed below its now falling 50-day ma,
TigerSoft users know to consider the stock bearish, especially if it over-extended on the
upside. Additional Tiger Sell signals give more points to sell the stock short.
the cumulative On-Balance-Volume (OBV) Line makes confirming new lows." These
conditions our Power Ranker flags for. And these technical conditions are described
in more detail in my TigerSoft Killer Short Selling
Techniques in Any Market.
WAMU - through 12/28/2007
The Most Endangered
Banks Are Showing Very Aggressive
Dumping of Their Shares
The problem with Washington Mutual is that it is loaded
up to the gills with bad home loans and derivatives based on these loans. Their
was only $2 in 1991. As the prices of homes rose in the next 15 years, this bank
rose 2500%. Its use of leverage with home mortgage loans made that possible.
the sword is turned against them... The Housing Market
Is Apt To Get Worse
I have shown that housing prices have only corrected a small percentage of
what they gained from 1995 to 2006. A 37% to 50% correction might be considered as
normal even if the longer term trend is up. Home prices have only fallen back 20% so
far from their highs."
May 2008 - WAMU shows heavy red selling. And in
mid-May, the stock
fell just below its mvg.avg. (TISI). This is an excellent point at which to sell
a stock as weak as this looked. Do you see how aggressive selling, measured by
OBV, is making new lows on its own ahead of price. It was seriously under-performing
WAMU since May 2008
Nothing that transpired since May changed our bearish view of the stock.
Look at the key TigerSoft indicators. They have been steadily falling, red and bearish.
Yahoo Message Boards Show How Difficult It Is
For Investors To Sell at A Loss. Hope That WAMU
Would Magically Recover, Could Be Found Right
To The Bitter End.
"I am, or should I say, was, a Washington Mutual shareholder. I did not
hold this stock in
an attempt to make a fast dollar, I have had this stock for a long time. The CEO of the
company repeatedly assured the media that the company was sound through 2010. Then,
on the eve of what looked like a "bailout deal" coming to fruition, the FDIC
came in, and to
the amazement of the WM management and everyone else, took over WM and basically
gave it to JPMorgan."
"Goldman and Morgan,the FED in disguise:
When will the Public wakeup to these Gangsters? "
Quotes are left out here to make it easier to record the range of emotion.
you know you voted for GWB - You deserve to lose everything, and live
your live in debtors prison. YOU DESTROYED THE WORLD'S ECONOMY by voting for GWB in 2004.
Longs Loss Here On Cox!!
my entire saving
THE BOUNCE TOMORROW!!
|Wamu has adequate liquidity-9-19-08
As late as last week, Chief Executive Alan Fishman said that WaMu is not looking for a
buyer, but reports said Wednesday that it has hired Goldman Sachs (nyse: GS - news -
people ) to handle a sale of itself. (See "WaMu's Thrift Sale.") The company has
argued, despite ratings downgrades and harsh words from bond-rating agencies Standard
& Poor's and Moody's that it has adequate liquidity and billions in deposits. (See
"WaMu Defiant.") This from a 9-19-08
||Shorts are Toast
...end of the week and WAMU will have
an out let for..., this is immediatley
a $20 stock. If they get bought out in the meantime, will ...
WAMU will be King when gov soaks up their bad loans