WaMu Woes Won’t End Soon
Recent post on Sweet Digs Seattle:
Last week we gave you the skinny on Seattle’s subprime situation and wondered how WaMu would fare given that it provided many high risk loans all over the country. Well Seattle Bubble and WaMu execs speculate the slump is not getting better anytime soon for WaMu and I have to agree. “The Tim” writes:
You know what though? If you want to turn a blind eye to reality and believe that the turning of the seasons will wave a magic wand over the housing market and make it all better come spring, you go ahead and believe that. Just try not to read the news or spend any time researching actual facts.
To summarize the points in the Seattle Times article on the subject, WaMu is currently facing
- Increasing past due home loans
- Increasing foreclosures
- Increasing credit card loan loss
- Sagging home prices
- Decrease in refis
For a bank you can imagine that this is not a good place to be.
