Perception Becomes Reality

I was noticing the DOW fell 700 points today after the Bailout Plan didn’t pass.

Then I was thinking about the collapse of Washington Mutual last week and it reminded me of a conversation from one of my favorite movies, “Sneakers”.

Cosmo: Posit: People think a bank might be financially shaky.
Martin Bishop: Consequence: People start to withdraw their money.
Cosmo: Result: Pretty soon it is financially shaky.
Martin Bishop: Conclusion: You can make banks fail.
Cosmo: Bzzt. I’ve already done that. Maybe you’ve heard about a few? Think bigger.
Martin Bishop: Stock market?
Cosmo: Yes.
Martin Bishop: Currency market?
Cosmo: Yes.
Martin Bishop: Commodities market?
Cosmo: Yes.
Martin Bishop: Small countries?

From Bloomberg News:

Sept. 25 (Bloomberg) — JPMorgan Chase & Co., the third- biggest U.S. bank by assets, agreed to acquire Washington Mutual Inc.‘s deposits and branches for $1.9 billion after regulators seized the thrift in the biggest bank failure in U.S. history.

Customers withdrew $16.7 billion from WaMu accounts since Sept. 16, leaving the Seattle-based bank “unsound,” the Office of Thrift Supervision said today. WaMu’s branches will open tomorrow and customers will have full access to all their accounts, Sheila Bair, chairman of the Federal Deposit Insurance Corp., said on a conference call.

2 Comments

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  • Kelley Rivers

    So true Brad! This is Kelley Rivers in North Pole Alaska and I wanted to say HI! Hope all is well with you since TURKEY and meeting with you there in Cappidocia.
    Just came back from hunting Moose and getting our Winter supply of Caribou and Moose and also going and getting our Salmon for the year. The economy is the same up here and business is down about 30%, but all else is good.
    Sara Palin is our Govenor and is well liked here but we will see how the Media trashes her in the Debate?? Cheer’s
    Kelley 🙂

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