[This post was written by Debbie, who has been with Wesabe from the start, and runs communications for us.]
Talk about retail therapy – I have been on a heck of a buying binge the last few weeks. Let’s see, first a few mortgage giants, then a big insurance company, and now I, along with all the other U.S. taxpayers, am looking at buying a whole bunch of bad mortgages and debt from the banking industry. Do these mortgages make my butt look big?
While still digesting our collective shopping spree, I heard the news tonight that my bank, Washington Mutual, has been shuttered and that JP Morgan has swooped in to “purchase its assets.” Part of the $307 billion in assets that JPMorgan Chase will absorb, according to CNN, includes “WaMu’s toxic subprime and option-ARM mortgages.” Toxic mortgages? Remember just a few short years ago those same ARM mortgages were being breathlessly called “exotic” by brokers? My head.
Just checked my balances on Wesabe and right now at
Washington Mutual JPMorgan, I’ve got $9,703.43 in checking and $284.74 in savings. I’m not worried that this money is going to disappear, but I was actually planning to take out $2,000 in cash tomorrow to pay the guys who have been finishing our basement. The FDIC said this transition would be “seamless,” so I’ll let you know how things go when I head to my local branch. I am fortunate not to be part of the nearly half of Americans living paycheck to paycheck (I was, however, in that group for a number of years), but I certainly don’t have $2,000 in the cookie jar.
Last night at the dinner table after I told my four-year-old son Leo that he had to eat some broccoli before he got dessert, he thought for a moment, looked up at me and said, “Yeah, but I don’t have to like it.” And so it is with the bail-out and now with WaMu. Yeah, it looks like you and I going to be buying a bunch of bad debt and that my bank is gone. We understand. But that doesn’t mean we have to like it.