Anyone in panic-mode yet because the dollar and your bank are both on the brink of fa

Discussion in 'Politics, Religion, Social Issues' started by doug in albq, Sep 26, 2008.

  1. doug in albq Suspended

    doug in albq

    Joined:
    Oct 12, 2007
    #1
    Anyone in panic-mode yet because the dollar and your bank are both on the brink of failure?

    Just wondering.

    think this "crisis" will lead to the "Amero?"

    only time will tell.

    You know, the smart money-pigs converted most of their liquid assets into foreign currency over a year ago. But, then again, they got a heads-up on all that was to come..............
     
  2. Sdashiki macrumors 68040

    Sdashiki

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  3. shfreelance macrumors 6502a

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    Eustis, FL
    #3
    I should be starting my career sometime next year, it's looking good. Since I have the right connections; I am more then positive I will get this job. That being said, I am thinking about putting my money into a over seas bank account (Europe). But I am thinking this may not be worth it, as I would probably have to pay taxes over there also? But with the US$ ever decreasing I have no clue... Any advice will be very helpful!

    All my money is in Bank of America...
     
  4. luckygyrl83 macrumors 6502

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    Jun 23, 2008
    Location:
    Fullerton, CA
    #4
    Im pretty nervous, and dont know what to do about it. I dont have a lot of money in Wamu, but it is my main bank and my work check goes in there. From what I was reading on Yahoo news, it seems like the money, up to 100,000 is insured by FDIC. It seems like when ppl start panicing, and taking money out, thats when things get worse.
     
  5. yrsonicdeath macrumors 6502

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    #5
    I'm not too worried myself at this point. I have a really stable job and my money in a very good credit union.
     
  6. rhsgolfer33 macrumors 6502a

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    Jan 6, 2006
    #6
    Don't do anything about it. Leave it all there, its not the 1930's, and if you want to avoid further damaging the financial system you won't take it out. You will not lose your money, it is insured by the FDIC to $100,000 on single accounts and $200,000 on join accounts. Your money is also backed by Chase now; just continue using the same checks, debit cards, credit cards, etc. It really isn't a terribly big deal.

    I wouldn't say the dollar is on the brink of failure, its trading at similar levels to what its been for at least the last year. In fact the dollar has actually increased in value over the last 3 months. If the dollar were failing we would expect a major decrease in its value when compared to other currencies. So either other major currencies are failing at the same time, or the dollar isn't weakening as much as the term "failure" implies.

    We're definitely in a tough situation, but all the panicking by the average American certainly isn't helping. Obviously quite a few people didn't pay attention in high school history class when bank runs were mentioned as a part cause of the depression and that partly as a result the FDIC was formed to guarantee people money deposited into banks with FDIC insurance.
     
  7. Gray-Wolf macrumors 68030

    Gray-Wolf

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    #7
    .... certain things have to happen, certain things must happen....and they will happen...:apple:
     
  8. shfreelance macrumors 6502a

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    May 24, 2008
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    Eustis, FL
    #8
    I have herd about this and know a little about this. But where does the FDIC get there money to back up there claims?
     
  9. danny_w macrumors 601

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    Mar 8, 2005
    Location:
    Austin, TX
    #9
    Why get in a panic about it when there is very little that you can do about it? Of course I'm concerned (very much so), but if you can't control a situation, worrying about it will only give you ulcers for no end gain. Unless the government/irs allowed me to transfer my 401(k) to a bank ira/cd (which would at least be covered by FDIC) then I don't see that I can really do anything about it myself. Thankfully I don't have a lot of debt right now, so that helps.
     
  10. Gray-Wolf macrumors 68030

    Gray-Wolf

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    #10
    They invest it, like other insurance groups.
     
  11. GSMiller macrumors 68000

    GSMiller

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    Kentucky
    #11
    I've got about $1,900 in the bank, a locally owned bank and aren't too worried, it's FDIC insured.
     
  12. QuarterSwede macrumors G3

    QuarterSwede

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    Location:
    Colorado Springs, CO
    #12
    If I remember correctly the federal government can, and will, lock the banks down so no one can take money out if enough people start pulling theirs out. Same goes for the stock market. This is to protect us from economic collapse. I could be wrong but I think this is the case.
     
  13. Les Kern macrumors 68040

    Les Kern

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    Alabama
    #13
    I'd better not lose a penny of what I have worked for.
    Just in case I have ordered my sledge hammer and raincoat.
     
  14. donga macrumors 6502a

    donga

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    AZ
    #14
    don't worry about your money at WaMu or anywhere else. general rule is that the FDIC guarantees it up to$100000. if you have that much money you'd be wise to spread it around to other banks.

    i'd think the main concerns i would have are job security/finding a job, ability to get a loan for car/home/school. if there isn't money being lent out people can't work hard to get to where they want, the american dream.
     
  15. synth3tik macrumors 68040

    synth3tik

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    Location:
    Minneapolis, MN
    #15
    THe only thing I really am worried about is my stocks, 401k and IRA. All of these I plan on keeping so they should bounce back after this crap is over. All money in the bank is FDIC insured, so I am not worried. The part of the economy that is taking the hit right now is the leaning. home loans, and lines of credit are really what are being effected right now. This obviously has far reaching consequences, but as long as people don't go into a total panic then everything should work out.

    This is what we get when we decided it was ok to live outside of our means and embraced credit. Since I have no active loans, credit card payments, home loans or the like I will choose not to worry at this point.
     
  16. rhsgolfer33 macrumors 6502a

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    #16
    You know I can't exactly tell you. I imagine its fairly complicated and comes from many places including investments, bonds, funds, etc. Unfourtunately I've got my Money, Banking, and Capital Markets course next semester, a little late for what's going on now.

    You should be fine, even if you had loans. As long as you're not behind on payments or don't have a NegAm loan you should be good. Credit is a good thing for the economy, unfortunately with the lack of regulation and the extreme pressure to meet Wall Street's expectations we had some really poor lending decisions made by companies like CountryWide and WaMu (otherwise a really great thrift) and that contributed significantly to the position we're currently in. Not to assign all the blame to the companies though, people attempting to live far beyond their means (and not consulting a financial planner or attorney in obtain home loans and other major credit decisions) also played a part in this.

    With regards to your stocks, 401(k) and IRA: in the long run you should see still see gains. Its similar to the banks, the more people that sell stocks and the less demand there are for those stocks, the lower the prices sink. Again though, you will see gains in the long run, investment for retirement is over 25+ years, what happens in the next 5 isn't especially important (unless of course you're retirement age now, in which case you should definitely get into lower risk investments). Hopefully your portfolio manager was smart enough to move to more liquidity in your portfolio (ie more cash or easily convertible to cash bonds, etc). Its not uncommon to see portfolios with >40% liquidity right now. Some people are seeing gold and commodities as a good investment right now (gold, light crude, etc), I don't know, too me I see them being kind of a roller coaster ride in the long run (ie a large gain right now and a nice large drop when this is over). But what do I know, I'm certainly not extremely qualified to make that assessment. I wouldn't have a large portion of my money in commodities and I know my portfolio manager just moved some investments out of those commodities.
     
  17. doug in albq thread starter Suspended

    doug in albq

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    Oct 12, 2007
    #17
    fdic won't mean squat when HYPERINFLATION makes $100K worth $100.

    You do not just want to take your money out of the bank, you may want to convert that soon-to-be-worthless paper into Euros or goods.

    I'm not trying to be chicken little, just prepared.

    Again, all those mega-millionaires got out of the dollar in plenty of time.

    hold tight, the Amero will be along in the near-future to rescue your currency-woes.
     
  18. doug in albq thread starter Suspended

    doug in albq

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    Oct 12, 2007
    #18
    no further comments?

    Yup, yer scared. With good reason.

    Hopefully you are out today buying 50lb. bags of rice and beans.
     
  19. madfresh macrumors regular

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    Dec 21, 2006
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    San Francisco, CA
    #19
    I'm not really worried as the banks I deal with are in good shape. (BOA, HSBC, Fargo, etc)
     
  20. .JahJahwarrior. macrumors 6502

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    Jan 1, 2007
    #20
    Dude, stop being ridiculous. Study history. Study capitalism. The Invisible Hand. It controls the market, it makes it work.

    Some people misbehaved in the market, they lived way beyond their means, they embraced easy credit and greedy people gave it to them. Those greedy people are about to get spanked by the Invisible Hand.

    People should be intrigued and open up a textbook to understand the economic theory which we are watching be played out in our markets. People should not be scared, they should not be converting their currency to other currencies (The Euro isn't any more secure in the long run than the dollar. It's still a currency. All currency can have a changing value.), they should not be buying 50 pound bags of anything.

    And the idea that this is some big conspiracy by people with money and that they have pulled all of their money out long ago is absolute bunk! Wise people have their money invested in a wide range of assets, which will include foreign currencies, but only a fool would invest all of their money in any one asset.
     
  21. doug in albq thread starter Suspended

    doug in albq

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    Oct 12, 2007
    #21
    the invisible hand is purposefully choking the USA, but go ahead and live in denial. Get ready for the snowball. Go stock up on food, water, emergency supplies.

    edit: I have studied much history and capitalism, and what I have determined is that capitalism is history!


    Don't get mad at me personally just because I am delivering a truth that is too hard for most comfortable Americans to swallow. It is not me that made all this happen, I am just an observer. But you wait, the next 30 days will be the most "exciting" times the USA has seen in a long time!
     
  22. aristobrat macrumors G4

    Joined:
    Oct 14, 2005
    #22
    Kinda blah, but it's Monday. They reorganized the cubes on the other half of the building where I work over the weekend. It's hard to find a way through to get to the soda machine! And the external SOX auditors are here again, which means I'll have to explain crucial workflows to them again, like I do every year. It's pretty sunny outside, and my roommate's new puppy didn't mess up her crate last night, so yay! :)
     
  23. atszyman macrumors 68020

    atszyman

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    #23
    Luckily my y2k shelter has been restocked.
     
  24. gusapple macrumors 6502a

    gusapple

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    Jan 29, 2007
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    The alphabetically sixth to last state.
    #24
    Wow wow wooooooooow! It might seem like this crisis will never end, but it will. If everybody would just do three things, then they should be ok.
    1. Save (Keep money in the bank.)
    2. Do not buy what you can't own.
    3. Be smart with assets.

    Also, Doug, there was nothing special shown to the rich people of America. It was no big secret that there was going to be a down fluctuation in the economy. If people had looked at the amount of debt in this country and how lazy we had become, things like this have come naturally, so you could bet they would happen again.
     
  25. Anuba macrumors 68040

    Anuba

    Joined:
    Feb 9, 2005
    #25
    Panic mode?

    I dunno. CNN just said that 59% believe that the US is headed for a depression. 42% don't think so.

    As for myself, I'm 100% convinced that CNN should check those numbers again (59% + 42% = 101%).
     

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