Wachovia Corp. said today it had a surprise $350 million first-quarter loss and will raise $7 billion by selling stock to prop up its troubled bottom line.

Wachovia, along with Citigroup, Merrill Lynch, and Washington Mutual, are described by blogger Michael Shedlock as “chronic anemics” that keep needing money from external sources to keep themselves going. Wachovia’s losses are tied to defaults on Option Arms, which allow the borrower to choose the size of a monthly payment, with the unpaid interest added to the mortgage balance.

Shedlock predicts more transfusions ahead for all these banks, so don’t get your hopes up that the credit crisis is anywhere near the bottom yet.