Cerebral Gibberish

What's on my mind, might just blow yours.

Frozen Credit Markets? Really?

Posted by heymoe on October 6th, 2008

With all the talk about banks failing, bailouts, mortgage crisis, record breaking losses in the stock market, etc.. You would think trying to get a loan or credit card might not be as easy as it once was. Before the bottom fell out, banks other financial institutes were just handing out credit / loans to anyone with a pulse.

A friend of mine recently got bought his first house before the bottom fell out and he was telling me all the hoops he had to jump through to get the loan that I didn’t have to do when I got my first loan or when I refinanced over 5 years ago. I mean when I refinanced the last time it seemed the process was pretty much: “Hey I like that rate, where do I sign?” and that was pretty much it.

Any way, imagine my surprise when I found in the mail today a credit card offer for a credit line of $30,000. This by itself most isn’t all that surprising but the bank making me the offer was WaMu. You know, the bank that was recently listed as the largest bank failure in American financial history.

I’m sure this offer will be honored by JPMorgan Chase who purchased the WaMu banking business from the Federal Deposit Insurance Corporation (FDIC) for $1.9B after it was seized by the Office of Thrift Supervision (OST) on September 25, 2008 but it is still funny I think. I mean, how frozen are the credit market if I can still get a $30,000 credit line from a bank that has failed.

While on the subject of failing banks: The new the new RBC Plaza building in downtown Raleigh recently opened for business and to celebrate they hired the Red Bull Skydivers to base jump from the top of the building but later canceled the stunt basically saying that will all the troubles in the market and banking, it wasn’t the appropriate time to have people jumping from a bank building especially with the Wachoiva next door which is pretty much in the same boat as WaMu.

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