[quote=earlyretirement]However, the stupidest investment I ever made was trying to catch the falling knife on Washington Mutual. I figured it was “too big to fail” and I made the horrible mistake of buying a TON of it 2 days before it failed. I ended up losing about $250,000 in a matter of a few days when the government essentially handed it over to Chase.[/quote]
I lost some money buying calls on WaMu as well right before they went under. I never quite understood how for some banks the shares ended up skyrocketing after being “sold” by the FDIC to other banks whereas WaMu shareholders were wiped out completely. When I first heard that Chase had bought WaMu I thought I was going to cash out big. It was only when the details worked out that I realized I wouldn’t be getting anything.
