Time to Bail on Your Bank?

Off Topic Politics & World Issues
1

FDIC is broke…the Fed has to pump money like crazy into Freddie and Fannie…biggest bank collapse since 1984 (Continental Illinois)…people losing their homes left and right…

Kiplinger on Freddie and Fannie:

"But to continue to provide this service, they must be able to borrow cheaply, and that window may be closing as the financial community loses faith in their ability to continue as going concerns. The cost of borrowing has gone up. On July 10, their bonds yielded 0.78 percentage point more than did comparable Treasuries – double the gap of a year ago.

In addition, the two entities will require heavy infusions of capital. At last word, just 1.22% of Fannie’s single-family loans that it owns or guarantees were 90 days or more overdue. Freddie’s number was 0.81%. Still, the companies have reported a combined loss of $11 billion for the nine months through March 31 because of foreclosures on mortgages they own, plus provisions for future losses."

"Moreover, their combined capital of $81 billion represents just 1.6% of the mortgages they own or guarantee.

Freddie’s lack of foresight is damning."

Everybody sing: 'Old man depression you have gone and done us wrong…

2

All my money’s under our mattress.

3

Hell, just spend it like you stole it.

4

But,if I stole it,should I save it as if I’d earned it?

5

[quote]Neuromancer wrote:
But,if I stole it,should I save it as if I’d earned it?[/quote]

I’ll let you know after I have visited Iron Dwarf.

6

The banks are severely under-capitalized. That’s why they went hat in hand to the Middle East and Chinese, for money, for capital. Yet ‘President’ Obama plans on raising the capital gains tax on individuals making over $250,000. Good way to form capital there, Barack!

7

Yeah, it doesn’t look like Obama is a firm believer in the tricle down economy. And look how well it worked ! ! !

How did it work for you HH?

8

[quote]Wreckless wrote:
Yeah, it doesn’t look like Obama is a firm believer in the tricle down economy. And look how well it worked ! ! !

How did it work for you HH?[/quote]

The only question should be where you would rather have that money. In the hands of consumers and investors to consume and make more products, ie the county is wealthier in goods and services, or in the hands of gov’t for inefficient projects and pork barrel spending.

Or anohter way of thinking about it…More jobs producing consumable goods or more jobs creating nothing useful. The country doesn’t need anohter Charlie Rangle memorial. The county doesn’t need another Beaurocrat sucking off the teet of the tax payer.

9

Fractional Reserve Banking

You’re going to fuck us all.

10

[quote]Wreckless wrote:
Yeah, it doesn’t look like Obama is a firm believer in the tricle down economy. And look how well it worked ! ! !

How did it work for you HH?[/quote]

Welcome back, bro! How are you? Now we can get down to some SERIOUS insults!

Worked well. Bought a lot of gold mining shares back at $270. Backing off some, putting a few chips into banking mutual funds. Made a bundle in defense stocks post 9/11. Oil and oil exploration shares have been fabulous!

Now its going to get even more of an adventure with Obama as President. Lots of opportunities as capital flees from the market here and heads overseas.

What the hell…if they’re going to destroy capitalism, better to be holding some chips, assuming they’ll be worth anything.

How’s Belgium?

11

Belgium is quite the opposite: stocks are so so but people and businesses are doing great.

12

I took my money out of WaMu amid rumors that the bank is sunk. I’m not even gonna deal with that FDIC shit.

13

Oh boy.

The “trickle down” stuff actually does work.

Now all this banking crap has to do with making stupid fucking loans, and idiots trying to run those banks.

When you are making loans to people who cannot pay them, that is stupid. And the government should not bail them out.

But the government is backing our deposits, up to $100,000.

But if you have that much in the bank, your an idiot. Intelligent investments in stocks, bonds, and real estate are the way to go. (Notice that while the price of houses went down, not very many, if any, rents went down.)

HH, this is noting but conspiracy theory talk, and has little to do with real economics. We aren’t even in a recession.

The recent drop in real estate prices was actually just a drop back to reality. The places with the biggest drops were actually the places with the biggest rise. Some places have not actually dropped.

Then it should be mentioned that the “mortgage crisis” is only with the secondary market. In other words the people who did not qualify for a regular mortgage, and should have realized that was a sign they should not be getting a mortgage until they get their act together.

There are definite problems, and the government does have it’s collective head up it’s ass. But that does not mean everything is going to collapse.

Our currency is cyclical. It goes up, and it goes down. Years ago it was cheap for Americans to go to Europe, and now the opposite is true. Later it will again be cheap to go to Europe again. This happens all the time, and will continue to happen.

I have been listening to chicken littles all my life, and they are mostly wrong. Like the books about the great depression of the 80’s, and the 90’s.

In fact we were in a recession during the 2000 election, and most people didn’t know it.

Now most people polled think we are in one, and we aren’t.

The fact of the matter is, we get our perceptions of what the reality is from what we see and read on television, the Internet, newspapers, and radio. And none of that really matters. We are our own person economy. Things can be going great for the country, but that does not matter if you lost your job right after sinking everything you had into buying a house.

Or if the countries economy is in a recession, if your in a stable job, with a good savings, and investments. Recessions generally don’t hurt people with 6 months of expenses saved in the bank, esp if they have no debt.

Maybe we are headed for a recession. Maybe not. But recessions last less then a year on average. And no matter who is president, no matter what the policy is, we will have another recession. Also someday it will rain. Someday you will get sick. Somebody will run into your car.

But lets not freak out about all that stuff. But it is a good idea to always be prepare for those events.

14

[quote]The Mage wrote:
In fact we were in a recession during the 2000 election, and most people didn’t know it.

Now most people polled think we are in one, and we aren’t.
[/quote]

Yeah, right!

And Reagan was the Messiah.

15

NINJA (No income,no job or assets) loans…the fact that such even exists is laughable, in a cosmic way.

Banks made these loans knowing that the Fed would have to bail them out, if necessary. There’s a reverse leverage at work — banks can create money. They can loan out more than they have assets, as long as they keep some money in reserve. They’ll create loans 10 or 12 times their assets.

If a high enough % of the loans go south, the bank has NO equity. It’s toast. That’s the crux of the crisis. Even if a small % of mortgages are worthless, the bank is fucked.

16

[quote]lixy wrote:
The Mage wrote:
In fact we were in a recession during the 2000 election, and most people didn’t know it.

Now most people polled think we are in one, and we aren’t.

Yeah, right!

And Reagan was the Messiah.[/quote]

Facts are facts.

17

[quote]The Mage wrote:
lixy wrote:
The Mage wrote:
In fact we were in a recession during the 2000 election, and most people didn’t know it.

Now most people polled think we are in one, and we aren’t.

Yeah, right!

And Reagan was the Messiah.

Facts are facts.[/quote]

Lixy doesn’t like facts.

18

http://video.google.com/videoplay?docid=6570350076275432581&hl=en

19

[quote]Headhunter wrote:
FDIC is broke…the Fed has to pump money like crazy into Freddie and Fannie…biggest bank collapse since 1984 (Continental Illinois)…people losing their homes left and right…

Kiplinger on Freddie and Fannie:

"But to continue to provide this service, they must be able to borrow cheaply, and that window may be closing as the financial community loses faith in their ability to continue as going concerns. The cost of borrowing has gone up. On July 10, their bonds yielded 0.78 percentage point more than did comparable Treasuries – double the gap of a year ago.

In addition, the two entities will require heavy infusions of capital. At last word, just 1.22% of Fannie’s single-family loans that it owns or guarantees were 90 days or more overdue. Freddie’s number was 0.81%. Still, the companies have reported a combined loss of $11 billion for the nine months through March 31 because of foreclosures on mortgages they own, plus provisions for future losses."

"Moreover, their combined capital of $81 billion represents just 1.6% of the mortgages they own or guarantee.

Freddie’s lack of foresight is damning."

Everybody sing: 'Old man depression you have gone and done us wrong…

[/quote]
which is the entire reason why I live by the saying that my grandfather told me.
if you cant buy it using cash you dont need it.

I own my home,I own the land under my home, I own my shop which happens to be on the land that I own.
I have no credit cards and I have a personal bank account with 5 dollars in it.
I live off of the stuff I grow and make money usually on a cash basis just like my grandparents did back in the good old days.

I do own some stock but thats in oil and precious metals.
even if my shop goes under and I go bankrupt tommarrow I will not loose my home or my land

I may not be able to have electricity but I do have a generator to run the pumps on the well during storms. and it wouldnt be too much to run the rest of the home on that same generator
I also produce my own biofuel from the oil that resturants would rather hand over to me for free than to have to pay a recycler.

and it isnt too involved of a process to produce your own methl-alcohol from organic matter if the economic world ends tomarrow. its been done before,grandparents made moonshine Its very easy to do.

even though I am broke I can live a long long time with 0 money and 0 need for money.
if the gevernment implodes in on itself tomarrow I would be one of the few prepaired for it.

its not hard to do really and I dont understand why nobody lives like this anymore.

if you dont have the cash to buy something,then dont buy it
if you dont have any means to barter, which happens to be alot of how I live in my community we barter with each other in goods and services its a way to stay self sufficiant, then you dont do it.

stop living beyond your means people
even if that means lowering your standards a bit who cares.

people see wealth as having the most money or the most things
in the end none of that maters,its all worthless specially when its not really yours.

20

What’s a bank?