Let's hope this isn't a sign of things to come for other financial stocks. With Greenspan probably raising interest rates on Wednesday this could be a very interesting couple of weeks. So many people have adjustable rate mortgages and can barely afford their payments, that ANY increase in payments could force MANY defaults. Hold on to your hats!!
Not only are the adjustable mortgages going to go up, so will the credit card rates on everyone carrying a balance.
I think WaMu grew on the back of their mortgage business, and not only will the interest rate hikes affect them, but the tightening at Fannie Mae and Freddie Mac. They won't have as easy a time packaging their mortgages for purchase by those organizations.
I am seeing more REDUCED signs around the Los Angeles area. I know, the prices will NEVER fall....hahahaha.