United States Banks

Discussion in 'Politics, Religion, Social Issues' started by 7on, Sep 16, 2008.

  1. 7on macrumors 601

    7on

    Joined:
    Nov 9, 2003
    Location:
    Dress Rosa
    #1
    I'm just curious. With the banks that failed over the weekend is there any warning signs we should watch for with other banks? I bank with USBank and it's impossible to google them (you just get US Banks as a general "United States" Banks). I'm just wondering if I should be prepared for a depression or to catch the warning signs before I get a letter in the mail stating "USBank has closed"

    Thanks!
     
  2. Queso macrumors G4

    Joined:
    Mar 4, 2006
    #2
    Assuming USBank and US Bancorp are the same thing (and who am I to know if they are?) I would keep an eye on the news stories being linked to their Google Finance page. If it is them I don't think you have too much to worry about.

    http://finance.google.com/finance?q=NYSE:USB
     
  3. 7on thread starter macrumors 601

    7on

    Joined:
    Nov 9, 2003
    Location:
    Dress Rosa
  4. Desertrat macrumors newbie

    Joined:
    Jul 4, 2003
    Location:
    Terlingua, Texas
    #5
    So far, the only people to lose when one of these banks has failed are the stockholders. Post-takeovers, the depositors have been able to get their money. Odds are that such will continue.

    'Rat
     
  5. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #6
    Regarding your sig- it would appear the same can be said for capitalism. ;)
     
  6. Desertrat macrumors newbie

    Joined:
    Jul 4, 2003
    Location:
    Terlingua, Texas
    #7
    Not really. "Capitalism" hasn't come anywhere near running out of money. Only the location of the money has changed--from the U.S. to places like China and Dubai.

    Well, and then with folks like me, who have capital invested outside of holdings in the financials. My net worth keeps on going up, just like it's supposed to. :)

    I grant that Keynesian economics is continuing to hurt my buying power, but that's been historic for some 70 years...And longer, really, if you consider FRB policies.

    Anybody thinks there's no risk in capitalism hasn't been paying attention. The downside of not building that better mousetrap is the opportunity to go broke. Shrug. That's what makes it fun.

    'Rat
     
  7. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #8
    However- don't banks rely on "other people's money"? Don't we as investors make money from the labors of others? Is the return we get disproportionate to the effort we expend? Just asking...there are moral dilemmas on both sides.
     
  8. Desertrat macrumors newbie

    Joined:
    Jul 4, 2003
    Location:
    Terlingua, Texas
    #9
    I've always figured that greed is part of human nature. Nothing wrong with using other people's money, so long as they get a fair rate of return. You deposit money with a bank; the bank loans it out--hopefully, only to those who can and who will repay.

    Same for the proverbial mousetrap company. You buy stock, the company sells mousetraps, you get dividends and the stock--if there are enough sales--increases in value.

    There are risks, of course. What we're seeing now is the result of a mix of undue optimism and a bubble psychology, coupled with bad judgement.

    This time around, it was houses and commercial property; there was supposed to be an unending increase in "value". In the past, say, only thirty years back, it was oil. Before then, it was the boom times of the 1920s, which included Florida underwater real estate as well as the stock market. Heck, you can go back to all manner of similar foolishness, with the prime example being the tulipmania in Holland.

    The world at large will get past all this mess, and all sorts of laws will be passed and there will be a big sigh of relief. Everybody will assume the ouchie has been kissed and there will never again be any economic pain. And there won't be.

    Until the next time. I guarantee you that there will be a next time. Dunno when; probably not in my lifetime. But keep the faith. :D

    'Rat
     

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