Layoffs are destroying the U.S. – occurring within Washington Mutual Inc. this time. To blame: the worst housing crisis since 1928 coupled with no restraint to our credit spending
This should be a warning for the future: we need to live within our own credit limits as we see houses and jobs currently being lost. These are the unfortunate consequences when we overextend our credit limit and cannot repay the debt.
Source Bloomberg.com:
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Washington Mutual Inc., the biggest U.S. savings and loan, cut 1,200 jobs after losses tied to subprime home mortgages. The Seattle-based company is eliminating positions in California, Florida, Illinois, Texas and Washington, spokeswoman Darcy Donahoe-Wilmot said today in an interview. The reductions represent 2.7 percent of the lender's 45,883 employees at the end of the first quarter. The world's biggest financial institutions have reported more than $396 billion in asset writedowns and credit losses amid the worst housing crisis since the Great Depression. Washington Mutual does more than half its mortgage business in California, where home price declines have been among the most severe in the country. |