Ken Himmler.com

Wa Mu seems like it is going to be the largest meltdown of a bank yet. Although I would like to be a bit scared I am not. I am not sure who said that "Those who forget history will be condemned to live it again". Those people who are in great fear have short memories. It was only 20 years ago that we had a similar meltdown (1986) with the collapse of the S & L Banks. Those who may not remember need a quick re-cap. There were two geniuses in Congress at the time Graham and Rudman. Their act (the 1986 Graham Rudman Act) changed the way people could deduct investment property on their taxes. This act caused people to walk away from their real estate. In many cases people were more willing to take seven years of bad credit than to hold onto a losing property that they might not deduct. This massive foreclosure also caused the S and L ‘s to go through the Wa-Mu dance. I was only a few years into my career at that point and thought the world was crashing in around me. It was only two years after that when the stock market had incredible gains. And while everyone was happy about their returns it wasn’t too long afterwards that the crash of 1989 happened October 19th otherwise known as Black Monday. The market dropped 30% in two days. I also remember the out of taste costume that a person wore to the Halloween party that year. They came as the stock broker that had bullet holes in them. This, after the man that shot his stock broker, his secretary and then shot himself – in Miami. If this man could of only held his emotions for a few years he would have has all his money back plus a nice profit. How many people are letting this short term economic fluctuation ruin their quality of life? There are inevitable truths, politicians will philander, prices will go up and in ten years you will look back and reminisce about how politicians were honest and prices were lower. – Thanks Baz Luhman for that last statement, (From his speech on wear sunscreen) Ken