WaMu Exculpatory Boiler Plate Tells The Story

WaMu (WM) comes out with up to date guidance. The big bold headlines tell a positive story. The claim is there is enough capital, credit conditions will not worsen and liquidity is more than adequate. But then you have to read the Important Cautionary Statements. Basically they caution you that anything that is being said made turn flakey and fall apart. They may lose access to liquidity. They may experience more adverse credit conditions.

And my very favourite

“Certain of the company's loan products have features that may result in increased credit risk;”

If you want to identify naked risk that is impossible to quantify or analyse I guess that sentence sums it up pretty good. They might as well play the rock song “Highway to Hell” in the background.