| T O P I C R E V I E W |
| lisamarie508 |
Posted - Sep 20 2008 : 05:26:58 AM
I am getting rather worried about it and have decided to pull out all but what will cover outstanding checks and stop putting my paycheck in the bank for a while to see what happens. If all of these HUGE banks are going under; what does that mean for all the little banks? The whole banking system seems to be in a really fast downward spiral. Yesterday, dh was told by someone inside that folks are pulling out their cd's and other investments and savings and actually recommended we do the same.
Anybody have any thoughts on this?
Farmgirl Sister #35
"If you can not do great things, do small things in a great way." Napoleon Hill (1883-1970)
my blog: http://lisamariesbasketry.blogspot.com/
My Website:
http://www.freewebs.com/lisamariesbasketry/index.htm |
| 25 L A T E S T R E P L I E S (Newest First) |
| Rebekka Mae |
Posted - Sep 29 2008 : 7:54:12 PM
Very interesting posts- I mean, we are just propping up a speculative system...and really, like we don't have enough debt as a country. It seems to me you can't throw debt at debt and expect it to go away.
Until we know more I am contented knowing I have some honest skills that will help us get through tough financial times.
Micheal Moore wrote an interesting post today that I found, it basically says the bailout is all wrong because people are not defaulting on their current mortgages because they bought more house than they can afford (which many did at a huge cost to themselves and the environment)- most bankruptcies and defaulted loans are actually caused by overwhelming medical bills-
how about we throw $700 billion at universal health care?
Aren't we worth it?
Rebekka
www.bebebella.etsy.com
As a woman I have no country. As a woman, my country is the whole world.
Virginia Woolf |
| laluna |
Posted - Sep 29 2008 : 5:18:06 PM
Interesting commentary:
http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html
By Jeffrey A. Miron
Special to CNN
Editor's note: Jeffrey A. Miron is senior lecturer in economics at Harvard University. A Libertarian, he was one of 166 academic economists who signed a letter to congressional leaders last week opposing the government bailout plan.
Economist Jeffrey Miron says the bailout plan presented to Congress was the wrong solution to the crisis
CAMBRIDGE, Massachusetts (CNN) -- Congress has balked at the Bush administration's proposed $700 billion bailout of Wall Street. Under this plan, the Treasury would have bought the "troubled assets" of financial institutions in an attempt to avoid economic meltdown.
This bailout was a terrible idea. Here's why.
The current mess would never have occurred in the absence of ill-conceived federal policies. The federal government chartered Fannie Mae in 1938 and Freddie Mac in 1970; these two mortgage lending institutions are at the center of the crisis. The government implicitly promised these institutions that it would make good on their debts, so Fannie and Freddie took on huge amounts of excessive risk.
Worse, beginning in 1977 and even more in the 1990s and the early part of this century, Congress pushed mortgage lenders and Fannie/Freddie to expand subprime lending. The industry was happy to oblige, given the implicit promise of federal backing, and subprime lending soared.
This subprime lending was more than a minor relaxation of existing credit guidelines. This lending was a wholesale abandonment of reasonable lending practices in which borrowers with poor credit characteristics got mortgages they were ill-equipped to handle.
Once housing prices declined and economic conditions worsened, defaults and delinquencies soared, leaving the industry holding large amounts of severely depreciated mortgage assets.
The fact that government bears such a huge responsibility for the current mess means any response should eliminate the conditions that created this situation in the first place, not attempt to fix bad government with more government.
The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.
Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of a businesses that remain profitable.
In contrast, a bailout transfers enormous wealth from taxpayers to those who knowingly engaged in risky subprime lending. Thus, the bailout encourages companies to take large, imprudent risks and count on getting bailed out by government. This "moral hazard" generates enormous distortions in an economy's allocation of its financial resources.
Thoughtful advocates of the bailout might concede this perspective, but they argue that a bailout is necessary to prevent economic collapse. According to this view, lenders are not making loans, even for worthy projects, because they cannot get capital. This view has a grain of truth; if the bailout does not occur, more bankruptcies are possible and credit conditions may worsen for a time.
Talk of Armageddon, however, is ridiculous scare-mongering. If financial institutions cannot make productive loans, a profit opportunity exists for someone else. This might not happen instantly, but it will happen.
Further, the current credit freeze is likely due to Wall Street's hope of a bailout; bankers will not sell their lousy assets for 20 cents on the dollar if the government might pay 30, 50, or 80 cents.
The costs of the bailout, moreover, are almost certainly being understated. The administration's claim is that many mortgage assets are merely illiquid, not truly worthless, implying taxpayers will recoup much of their $700 billion.
If these assets are worth something, however, private parties should want to buy them, and they would do so if the owners would accept fair market value. Far more likely is that current owners have brushed under the rug how little their assets are worth.
The bailout has more problems. The final legislation will probably include numerous side conditions and special dealings that reward Washington lobbyists and their clients.
Anticipation of the bailout will engender strategic behavior by Wall Street institutions as they shuffle their assets and position their balance sheets to maximize their take. The bailout will open the door to further federal meddling in financial markets.
So what should the government do? Eliminate those policies that generated the current mess. This means, at a general level, abandoning the goal of home ownership independent of ability to pay. This means, in particular, getting rid of Fannie Mae and Freddie Mac, along with policies like the Community Reinvestment Act that pressure banks into subprime lending.
The right view of the financial mess is that an enormous fraction of subprime lending should never have occurred in the first place. Someone has to pay for that. That someone should not be, and does not need to be, the U.S. taxpayer.
"I believe in God, only I spell it Nature." -- Frank Lloyd Wright |
| K-Falls Farmgirl |
Posted - Sep 29 2008 : 4:53:47 PM
We just checked with our financial adviser.. He says we are OK!. He has helped us kept our finances in order for the past 8 years.. He has us diversified in several different accounts with some with growth and some with income.. DH is disabled and draws SSDI. I retired with a small 401k. We will continue to follow his advice and use our banking practice, We pay for things as we need them and try not to charge without paying the balance off each month. Thankfully we found our piece of heaven here..a small 1 acre and beautiful 2 year old 2000sq ft home when we did and were lucky to sell our home in Arizona (which was on the market for 14 long months)We will be watching our pennies carefully...and pray for change.
Cheryl #309
Farm girl sister
Keep life simple, to Simply live. Life is too short to worry about it. |
| miss wilma |
Posted - Sep 29 2008 : 2:30:17 PM
There are supposed to be 117 more banks on the watch list, I am glad we have a small bank I dont know if that is helpful or not but I do feel safer with them
Farm Girl #96
http://www.picturetrail.com/misswilmasplace
http://misswilma.blogspot.com/ |
| Alee |
Posted - Sep 29 2008 : 1:47:04 PM
I haven't heard about GMAC being in trouble, but I do know that the "foundation" banks such as Wells Fargo and First Interstate are going to weather this storm just fine. I keep a really sharp eye on these two as my husband works for Wells Fargo. We also were talking about it in my accounting class. We aren't ready for a home loan for a while yet, but when we do, we will for sure be going with one of those two banks.
Alee
Farmgirl Sister #8
www.awarmheart.com
Please come visit Nora and me on our blog: www.farmgirlalee.blogspot.com
Put your pin on the farmgirl map! www.farmgirlmap.blogspot.com |
| miss wilma |
Posted - Sep 29 2008 : 11:45:39 AM
Right on Betty
Farm Girl #96
http://www.picturetrail.com/misswilmasplace
http://misswilma.blogspot.com/ |
| Betty J. |
Posted - Sep 29 2008 : 11:44:23 AM
What do you want to bet that the whole group of those clowns vote themselves a raise after all this is over?
Betty in Pasco |
| Dragonfly Farm |
Posted - Sep 29 2008 : 11:21:06 AM
I am a little concerned, I will no longer be keeping that much money in the bank. Never have compleatly trusted banks anyway. It's easier to just pay for things with cash, and buy money orders for bills you can't do that for.
Be Blessed Millissa
http://dragonflyscreations.etsy.com
http://dragonflyscreations.blogspot.com
www.myspace.com/rainbowlove1981 |
| fionalovesshrek |
Posted - Sep 29 2008 : 11:12:21 AM
The House rejected the Bill. I hope it gets dropped now, we can struggle our way back up without putting our children, and our childrens children in debt.
P~
www.fionaswampington.blogspot.com
http://homespunhensfarmgirlchapter.blogspot.com/
Man, despite his artistic pretensions, his sophistication, and his many accomplishments, owes his existence to a six inch layer of topsoil and the fact that it rains. |
| K-Falls Farmgirl |
Posted - Sep 29 2008 : 10:49:18 AM
We also have GMAC Mortgage.. I do believe it's safe.. If people would only live within their means and teach their children to do the same, Credit card companies and loans companies would have to look hard at their practices. I realize sometimes Loans are a must , but you must be able to PAY back.A lot of people and their kids are in a "Have to have" society more than a "need for survival." especially when things are so expensive, Thats supply & demand I guess....
May we all have what we need and live simply, happily and feel a sence of wealth in wholesome family and friends.
Cheryl #309
Farm girl sister
Keep life simple, to Simply live. Life is too short to worry about it. |
| herbquilter |
Posted - Sep 29 2008 : 09:11:45 AM
The wonderful thing about this country, it was formed for freedom and more than just survivial, LIBERTY AND THE PURSUIT OF HAPPINESS.
May we have FARMGIRL JOY in our lives everyday, at our own farms and in our family's...as the world goes on with it's drama.
Blessings,
Kristine ~ Mother of Many, MRET & Wellness Coach
http://herbalmommasda.blogspot.com/
Farmgirl Sister #97
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| miss wilma |
Posted - Sep 29 2008 : 07:48:23 AM
I guess Sue we are just going to have to do what we can to survive. You know I look at it this way as long as we try to do whats right there will be away made for us,When I hear and see all of the deceit and crooked dealings it just makes me more determined to try to keep what little I have close to me, seems like the greedy can never get enough . But look at it this way they may do wrong now but sometime there will be a reckoning in their lives and they will have to pay
Farm Girl #96
http://www.picturetrail.com/misswilmasplace
http://misswilma.blogspot.com/ |
| palmettogirl |
Posted - Sep 29 2008 : 05:58:57 AM
i can't agree with you more, miss wilma. if, instead of jefferson, madison, washington, we had the current clowns in Washington, DC meeting in that bar in Philadelphia back in 1776,...well, we'd be singing "hail to the queen"!! i wish they would realize that they should think of the country as a whole instead of their own personal pocketbooks. |
| miss wilma |
Posted - Sep 28 2008 : 4:09:49 PM
Kristene I wish we had some more Thomas Jeffersons running our country now,If we ever figure out what happened to COMMON sense I think things would get better
Farm Girl #96
http://www.picturetrail.com/misswilmasplace
http://misswilma.blogspot.com/ |
| Betty J. |
Posted - Sep 28 2008 : 3:36:11 PM
I do some of my banking at a local savings & loan. They do not sell the mortgages like those huge banks have been doing. The mortgage I have on my house was sold five times before GMAC bought it 10 years ago. I certainly hope they are on solid footing. I would like to pay my house off and save the payments for future use--remodeling.
Betty in Pasco |
| herbquilter |
Posted - Sep 28 2008 : 3:19:48 PM
Here's what Thomas Jefferson said on these topics:
"I have sworn upon the altar of God eternal hostility against any form
of tyranny over the minds and lives of men. To preserve our
independence, we must not let our rulers load us with perpetual debt.
We must take our choice between economy and liberty, or profusion and
servitude. If we run into such debts, we must be taxed in our meat and
drink, in our necessities and in our
comforts, in our labors and in our amusements. If we can prevent the
government from wasting the labor of the people under the pretense of
caring for them, they [the people] will be happy."
-- Thomas Jefferson
Very interesting and true! Oh, boy, we may be in for a ride.
At least our lives won't be boring.... :)
Blessings,
Kristine ~ Mother of Many, MRET & Wellness Coach
http://herbalmommasda.blogspot.com/
Farmgirl Sister #97
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| Alee |
Posted - Sep 28 2008 : 3:19:26 PM
I am so glad it went so well, Kristine! Your classes are _exactly_ what people are needing right now!
Alee
Farmgirl Sister #8
www.awarmheart.com
Please come visit Nora and me on our blog: www.farmgirlalee.blogspot.com
Put your pin on the farmgirl map! www.farmgirlmap.blogspot.com |
| herbquilter |
Posted - Sep 28 2008 : 3:16:26 PM
The Food Preservation class was awesome. Had a good turnout.
Oct 11 & 18th I'll be teaching Frugal Feasting at 2 local library's. I'll post the handouts on my blog after the class.
Alee, Thanks for asking!
Blessings,
Kristine ~ Mother of Many, MRET & Wellness Coach
http://herbalmommasda.blogspot.com/
Farmgirl Sister #97
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| lisamarie508 |
Posted - Sep 26 2008 : 8:57:42 PM
Sheryl-lyn that is the exact same mentality we had when buying a house. It took us 3 years to save for this house and we figured that we could still pay the mortgage if we only had MY salary as mine was the lesser of the two and dh's job was more hazardous and more likely he could get hurt. That very thing has happened more than once and dh is in the middle of another major injury now. I'm so glad that we were smart enough to do that or we could have lost our home a long time ago.
Farmgirl Sister #35
"If you can not do great things, do small things in a great way." Napoleon Hill (1883-1970)
my blog: http://lisamariesbasketry.blogspot.com/
My Website:
http://www.freewebs.com/lisamariesbasketry/index.htm |
| sewgirlie |
Posted - Sep 26 2008 : 5:33:48 PM
I agree with you guys that sometimes things just have to hit bottom before they can get better. You know what? When I wanted to buy a house, we SAVED money for two years and spent not one dime without having first put it in the bugdet. No extra food, no extra gas, NOTHING. My dad said to get only the amount of mortgage that we could pay with one salary because you never know what could happen. Thank God we listening because within one year, my first husband was diagnosed with cancer and unable to work for sometimes months at a time!!
I am tired of paying for people who do not put limits on themselves, yet expect others to pick up their pieces. Time to put the money in the mattress!!
My quilting and life blog!!
http://downtoearthliving.blogspot.com/ |
| palmettogirl |
Posted - Sep 26 2008 : 4:02:53 PM
wakovia looks like it'll be next to bite the dust. i started moving money out of there yesterday, hope to get more out on monday. i'm concerned because i have to pay the taxes on my house in november and don't want to take a chance that i'd have to wait to get any money if they have to reorganize or anything. i don't feel like we are paranoid or panicking, but i'm just trying to think ahead to avoid something stupid happening. good luck to everyone.....but i know that farmgirls are smart and think ahead!! |
| fionalovesshrek |
Posted - Sep 25 2008 : 8:13:23 PM
As of tonight, the death knell has rung for WAMU, Washington Mutual is no longer.
Your money is still good as it's deposits were sold to a live bank, but wamu is kaput. Oh, and did you hear the FDIC needs money to keep it afloat. Isn't that just the worst!
P~
www.fionaswampington.blogspot.com
http://homespunhensfarmgirlchapter.blogspot.com/
Man, despite his artistic pretensions, his sophistication, and his many accomplishments, owes his existence to a six inch layer of topsoil and the fact that it rains. |
| pasofino |
Posted - Sep 24 2008 : 4:47:44 PM
Interesting is an understatement !!!!!....I live in the Adirondacks....so many people cant pay there taxes or there LAST years fuel bill...contrary wife said it..... Its very scary....I now have my own hens...garden...rabbits.... and horses for transportation....Wake up...
Happy Trails,Claudia
Sisterhood #328
www.wolfpondstables.com
www.friendsofwolfpond.blogspot.com |
| palmettogirl |
Posted - Sep 24 2008 : 12:16:57 PM
we also watch fox news and several of the financial guys say that the government should stay out of this mess......let the people who are going to fall---well, fall! the sooner they do, the sooner things will start to fix themselves up again. frankly, i'm so sick of feeling like i'm being taxed to death to support so many people who really don't care and aren't concerned enough to want to take care of themselves. i know there are certain instances, like people who are sick or disabled.....but for the many who are just too plain lazy and think, what the heck, it's no sweat off my back if i don't pay my obligations......that's what makes me mad. |
| Bellepepper |
Posted - Sep 24 2008 : 11:41:21 AM
I am all for the government NOT passing the bailout bill. I know the whole economy will crash. Maybe that is what we need. Start over. How many times have we personally, had to do that? We would all be wealthy if someone came along and fixed all our $ mistakes. No, we dug in and fixed it ourselvs. The country and big business can do it too. I heard this a.m. that "they" are wanting to bail out credit card co and bad student loans in this same bill! We may all wish we had planted a bigger garden. |
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