Thursday, September 25, 2008

WaMu Approaches Carlyle Group. Blackstone

Wall Street's credit tantrum crescendo sounded loudly last week, such that it was heard in the Bush Treasury Department. The likely result of the big money boys shutting down lending is the following:

1. Banks prices deflated
2. Investment by PEU’s, private equity underwriters
3. Banks dump their junk at premium prices, including 2nd liens, credit card debt, student loans, and car loans
4. Share prices rise
5. PEU boys profit handsomely

Washington Mutual is currently at stage one and looking to advance to stage two. According to the Wall Street Journal, WaMu approached The Carlyle Group and Blackstone for possible investment. Normally there is a courting process, but this could be accelerated by the Bush corporawhorehouse on Pennsylvania Avenue. Is it 1600 or 1001? The White House or Carlyle's corporate offices?

Bush is pushing rapidly for leaders to approve his bail out plan. Then the corporafornication can begin. Merge, exchange money, then sell the asset later....