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<font size="2" face="Verdana, Helvetica, sans-serif">GL check out the profile, I beleive you have the wrong person.Quote:
Originally posted by Beachcomber:
My God Katie, if you want to pose as someone new at least change your avatar. LOL! How goes it?
I see what you mean. Dana??? She has been around since the beginning I see.
I didn't realize I was using the same avatar as katie. Found a new one to limit the confusion, b/c I know some around here are easily confused! [img]smile.gif[/img]
<font size="2" face="Verdana, Helvetica, sans-serif">Yeah, well that party is over. Live by the sword, die by the sword. We soaked up debt and bought things we couldn't afford. Now that banks need to raise capital to compensate for their losses, they are no longer in a position to lend.Quote:
Originally posted by Newbi Mom:
Hi Boys,
I only understood every other word of your original post, but I suspect you were talking about the lending crisis. Fortunately we don't have much debt, only one car loan and a student loan. I just don't understand how so many people can handle living with so much debt...but that is why I bought an economical Civic rather than a status symbol SUV.
Funny that the status of owning an SUV has quickly change to moron! [img]smile.gif[/img]
First it was houses. Next will be cars and credit cards.
The days of easy money are over. Just as we willingly went in the direction of more and more debt, we are spriralling toward less and less of it. The question is, just how far will it spiral in the opposite direction.
We've been through several waves followed by relative calm. The next "wave" will be telling. Hang on for the ride, 'cuz I think this one will be fun.
My list of top things to worry about, in no particular order:
GM/GMAC
Merrill
Lehman
Fannie
Freddie
Nat City
First Tennessee
Citibank
Wamu
All it takes is for one of them to come out with some unexpected, crazy negative news and confidence will evaporate. There has been a slow drain on the less strong banks...this will of course increase should something else head south. Indymac didn't help now that they're under control of the FDIC...
It will be interesting to see just how much the gov't will take on. We are seeing unprecedented socialization of our financial system under a republican president.
Also consider that the more the government backs all these crazy assets and shaky financial institutions, less strong will the government's balance sheet be. That portends a shaky dollar, which in turn causes more inflation, which always is the bane of a healthy, sane economy. The answer to inflation is tighter money, which in turn means less availability of credit, which means...you get the picture.
Let the good times roll...
<font color="#CC6600" size="1">[ July 14, 2008 04:13 PM: Message edited by: The Big Sexy ]</font>
I am glad we are the fortunate few in this country who have minimal debt. We plan to be totally debt free in about 3 years if all goes as planned. As they say, CASH IS KING!
My God Katie, if you want to pose as someone new at least change your avatar. LOL! How goes it?
<font size="2" face="Verdana, Helvetica, sans-serif">That is remarkable. I'm farther away than three years, but being debt free is my goal, too. I was about 7 years away but I bought a foreclosed house and now I'm fixing that one up, too. I got a 15 year loan at a great rate, so I hate to pay that down early...Quote:
Originally posted by Newbi Mom:
I am glad we are the fortunate few in this country who have minimal debt. We plan to be totally debt free in about 3 years if all goes as planned. As they say, CASH IS KING!
A couple months ago, a friend called me up about federal insurance on deposits his 93 year old father had in People's bank. As it turns out People's was undergoing federal oversight, and my friend's father had several hundred thousand in several cds at the bank under his and my friend's brother's name.
I wasn't entirely sure how the insurance worked, so I googled like anyone else would. The way I understand it is that there's $100,000 federal insurance per person per bank, meaning a chunk of those cds were not covered by the federal insurance.
Ok, not everyone has several hundred thousand sitting in cds, much less at one bank, but it got me to thinking that many people don't understand how federal deposit insurance works. Fortunately, my friend and his brother addressed the problem and moved a chunk over to USBank so all would be covered in the unlikely case of a bank failure.
Most bank failures are the smaller institutions, but we are now in a period where some of the bigger ones may go under. Indymac is now under federal protection, and they weren't exactly small with over $30 billion in assets. 5/3 which is about the 15th largest has about $110 billion in assets.
<font color="#CC6600" size="1">[ July 15, 2008 02:35 PM: Message edited by: The Big Sexy ]</font>
As I understand it you are correct, it is federally insured for $100k per person, per institution. After that whatever additional funds you may have are covered at .50 cents on the dollar. So if someone has say $200k in one institution and that instittion fails, they would get $150k.
<font size="2" face="Verdana, Helvetica, sans-serif">I don't recall reading anything about 50 cents on the dollar. Homework assignment.Quote:
Originally posted by Beachcomber:
As I understand it you are correct, it is federally insured for $100k per person, per institution. After that whatever additional funds you may have are covered at .50 cents on the dollar. So if someone has say $200k in one institution and that instittion fails, they would get $150k.