Here’s the major 3. Feel free to add AIG, Fannie, Freddie and Merrill at your leisure.
1.) The one that started it all. When Bear Stearns failed and was bought out by JP Morgan on March 14, 2008, it became the first of many disasters stemming from over reliance on subprime loans and the mortgage industry. You might even call this the clarion call that announced our impending doom. The Titanic of failboats.
2.) Our latest freak out began last week when Lehman announced they would file for Chapter 11 bankruptcy. Since then, major parts of the business have been bought out by Barclays bank of London. Kind of like pirates raiding a new failboat.
3.) And now, here we are. With last night’s announcement on the conference call that WaMu virtually failed weeks ago and was barely afloat, JP Morgan is again stepping in for the big buyout. I haven’t seen any of the financial press using the term we coined last night, JP MorgAmWu, to describe the sale, but in times like this we need to just sit and wait. Similar to the vessel of the lazy sea captain who falls asleep at the helm, the failboat doesn’t need any extra invitation to run aground.
images via LOLFed