Washington Mutual Collapses; McCain Destroys Bailout Deal
There are no more nights in politics or business -- only the endless horrible grind of collapse and fuckery, 24 hours a day, including this newest chapter in our latest, greatest depression: Washington Mutual has collapsed, and was closed by the Federal Government late Thursday night. It's the biggest bank failure in U.S. history. And the bipartisan congressional-White House-Treasury bailout deal that might have stopped the bloodshed, well John McCain visited Washington for the first time in half a year and wrecked EVERYTHING.
First, the WaMu news:
Washington Mutual Inc was closed by the U.S. government in by far the largest failure of a U.S. bank, and its banking assets were sold to JP Morgan Chase & Co for $1.9 billion.
Thursday's seizure and sale is the latest historic step in U.S. government attempts to clean up a banking industry littered with toxic mortgage debt. Negotiations over a $700 billion bailout of the entire financial system stalled in Washington on Thursday.
Oh, look at that little newsy connection there: WaMu collapsed and was shut down tonight as McCain wrecked the Treasury's compromise that was carefully and delicately worked out over seven days between the White House and both parties in both the House and the Senate. Well done, Maverick!
Now, onward to what exactly the grandstanding idiot actually managed to ruin during his explaratory visit to Washington, where he is supposedly a senator yet hasn't been seen in six months and has absolutely no role on any of the economic committees in Congress responsible for this legislation.
McCain showed up, said nothing during the negotiations -- he had no idea what they were talking about -- but apparently put House Republican John Boehner up to introducing an entirely new proposal at the last minute. And McCain wouldn't even commit to that one! (Again, he has no idea what any of these people are talking about. Cindy counts the millions at the McCain Mansions.) Oh, and then the whole thing collapsed and everybody went home:
It was the very outcome the White House had said it intended to avoid, with partisan presidential politics appearing to trample what had been exceedingly delicate Congressional negotiations.
Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the Senate banking committee, denounced the session as “a rescue plan for John McCain,” and proclaimed it a waste of precious hours that could have been spent negotiating.
Anyway, who knows if the bailout would've worked? Who knows if the compromise would've done some good? What seems pretty clear in this first dark hour of Friday Morning is that Washington Mutual could not hold on long enough to survive another day or week of McCain's grandstanding time-outs, and if McCain is capable of sticking to "his word" for more than 15 minutes or so, he may well sit out the first presidential debate tonight.
We have an idea for Barack Obama: Bring Henry Paulson and George W. Bush and Chris Dodd and Nancy Pelosi and David freakin' Letterman to Mississippi tonight, and let them tell America what John McCain pulled on Thursday. (But only for like five minutes, because we are all tired of these people ... except Letterman. Letterman can stay.)
WaMu is largest U.S. bank failure [Yahoo News]
Sell! Sell! McCain Is Tanking! [Boston Globe]