Because JPM took over WaMu and agreed to back their deposits, no depositor money appears to be at risk - even accounts over 100k. But that just means you got lucky. It could have gone either way. FDIC would have likely been wiped out (which may be why JPM swooped in) and they would have gone to the Treasury for more. Billions of deposits have been pulled out of WaMu over the past week or so - and rightfully so. At what point can JPM no longer take over banks? They took over Bear not too long ago. JPM has capital but it can't take over every bank. Who else is out there? Citi? BoA? GS? None of the big boys stand out as exceptionally strong right now - all of them were leveraged to the hilt.

National City and Wachovia are among the next on my list of institutions to fail. They might not be next but they are not in good shape. Wachovia does not have as many death spiral type of deals like WaMu had and they have some juicy assets but we will see what shakes out.

We are on the verge of very interesting developments that have been building for many years. I can't profess to know how it will shake out but it could be really bad for many people. I really hope that it doesn't come to that though but I just don't see how we are going to turn the corner and 6 months from now have a roaring economy again.