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Across the Fence:  Is anyone concerned about the whole bank crisis?  |
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lisamarie508
True Blue Farmgirl
2648 Posts
Lisa
Idaho City
ID
USA
2648 Posts |
 Posted - Sep 20 2008 : 05:26:58 AM
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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:
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Mumof3
True Blue Farmgirl
3890 Posts
Karin
Ellenwood
GA
USA
3890 Posts |
Posted - Sep 20 2008 : 06:11:19 AM
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I'm concerned but I am still using the bank. If you have up to $100,000 in the bank and it folds, and your bank is an FDIC institution, you are covered by FDIC insurance. That means if the bank goes under on Tuesday, on Wednesday you will be able to get your money. All of it. If you have over $100,000 (not anyone I know! lol) you will receive the $100,000, but may not recoup the entire remainder of your money, it may be just a portion.
If you have cd's, mutual funds and savings, the same rules apply. Part of the problem is that people panic at the first sign of trouble and pull their $$$, causing the banks to have no resources for investments. I would contact my bank, find out if the accounts and investments are actually covered by FDIC and, if they are, leave them there. It is a smart idea to have cash on hand for emergencies, but for the most part, our dollars are still safe in the bank.
Karin
Farmgirl Sister
# 18 :)
www.perfectlittlemiracle.blogspot.com
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Bellepepper
True Blue Farmgirl
1207 Posts
Belle
Coffeyville
KS
USA
1207 Posts |
Posted - Sep 20 2008 : 06:26:43 AM
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| I think it is the mortgage and investment companies that are going under. AIG is an insurance company. Fanny May and Freddy Mack are mortgage companies. Leamen Bros is an investment company. Yes all the financial companies are connected but I think the banks are safe (for now anyway) Where you may lose any money is if you have a retirement acct or mutual funds. The biggest problem came because money was being lent to people to buy a house with no money down and a very low but adjustable intrest rate. When the interest went up they couldn't make their payment. Add the rising cost of fuel and groceries and there isn't enough money to go around. |
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
Posted - Sep 20 2008 : 06:37:39 AM
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We were talking about this in my accounting class. The problem is caused by banks who got into that whole mortgage mess. It's complicated but it boils down to banks were investing in an investment (loan) that had no value. And they didn't do it once but millions of times.
My professor says that banks that focus on more old fashioned principles will be fine because they didn't get into that mess. I know that Wells Fargo and First Interstate are going to weather the storm just fine.
However, if I were banking at WaMu, I would take my money elsewhere. And as Karin pointed out, the FDIC will protect our dollars. If you do have investments over $100,000, simply break them up into separate accounts so no account is over $100,000.
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 |
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Tapestry
True Blue Farmgirl
1223 Posts
Cheryl
Wisconsin
USA
1223 Posts |
Posted - Sep 20 2008 : 07:34:35 AM
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I guess what I want to know most of all is that they keep saying tax payer dollars are going to help with the bail outs. When and how are they going to get the money from us? Sigh...So many are already in dire straights with everything costing so much who has the money to start funding this bail out? I know the money is already there from previous tax years but at some point you have to put that money back, right? We just had another paper mill fold here with over 400 people now out of work. Lots of others have closed or laid off lots of people and I'm sure our community of 80,000+ is just one small example across the country.
Happy farmgirl sister #353
Look for rainbows instead of mud puddles 
http://tapestrysimaginings.blogspot.com/ |
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Contrary Wife
True Blue Farmgirl
2164 Posts
Teresa Sue
Tekoa
WA
USA
2164 Posts |
Posted - Sep 20 2008 : 11:08:18 AM
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The whole FDIC, protected up to $100,00 guarantee is a bit misleading tho cause the goverment only has so much money, there is no way it could cover all that for the entire country if we have a total collapse of our banking system. Granted, it probably is unlikely that the whole system would go at once, but stranger things have happened. It is a worrisome time for our country. Be prepared to take care of yourself and yours is my motto.
Teresa Sue
Farmgirl Sister #316
"Learn the rules so you know how to break them properly." The Dalai Lama |
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
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therusticcottage
True Blue Farmgirl
4439 Posts
Kay
Vancouver
WA
USA
4439 Posts |
Posted - Sep 20 2008 : 11:44:25 AM
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I just listened to Suze Orman on Larry King the other night regarding the FDIC. She said even if the FDIC runs out of money they have a full credit line with the Federal Reserve and would be able to cover all deposits up to $100,000. However, it could take months to get your money if you have to file a claim with the FDIC.
I am very concerned about all this and have been watching Fox Business Channel all week. The market is back up but there is still the mess with the investment firms and banks. I decided this week that I'm going to be keeping more cash on hand at home and will be paying cash for what I buy instead of using my debit card. I'm changing banks as mine is WAMU which is now has a junk bond rating and is up for auction.
Handmade Soap and More! - http://therusticcottage.etsy.com
The Rustic Cottage Blog http://therusticcottage.blogspot.com
PROUD FARMGIRL SISTER #100 |
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willowtreecreek
True Blue Farmgirl
4813 Posts
Julie
Russell
AR
USA
4813 Posts |
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Bellepepper
True Blue Farmgirl
1207 Posts
Belle
Coffeyville
KS
USA
1207 Posts |
Posted - Sep 20 2008 : 2:05:52 PM
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| Cheryl, To ansswer your question, when are they going to start taking money from us? They won't have to IF the financial companies can pull themselves out of this with the loan that the government wants to give them. It is a loan and they will pay it back IF they can. If they can't, then it will just be part of our country's debt. Oh, that would be "We the People". We'll have to pay more and more taxes. Income, cap gains, dividends, interest on savings, You get the picture. |
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soapmommy60543
True Blue Farmgirl
2197 Posts
Ann
Oswego
IL
USA
2197 Posts |
Posted - Sep 20 2008 : 2:47:03 PM
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I like how Alee explained this, with how the banks invested in other investments. Here's how the snowball is rolling downhill currently (my husband is a financial consultant by trade, and this is how he explained it to me): Not only did the banks make bad investments, the investment houses who invested in the bad-investing banks did too, as well as banks and other markets around the world. Now, Uncle Sam has come in on his big white horse to supposedly save the day. However, he just wrote a $700 Billion (yes, billion with a b) bad check basically, because this is all deficit spending, to cover the bad investments. Now, I'm no mathemetician, accountant or economist. Not by any stretch. But, I did pay attention in history class. If one looks back to 1929, when things were also going from bad to worse, we also had a terrible natural disaster follow shortly thereafter (dust bowl era). We have had our disasters happen during the financial fall (think hurricanes the last 4 years). I'm glad I have my farmgirl skills, that's all I can say. What I haven't canned myself, I've been stocking up on as budget permits. Things are going to be tough I think for a while.
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Contrary Wife
True Blue Farmgirl
2164 Posts
Teresa Sue
Tekoa
WA
USA
2164 Posts |
Posted - Sep 20 2008 : 2:51:44 PM
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I don't think tough even begins to describe what is ahead of us.
Teresa Sue
Farmgirl Sister #316
"Learn the rules so you know how to break them properly." The Dalai Lama |
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graciegreeneyes
True Blue Farmgirl
3107 Posts
Amy Grace
Rosalia
WA
USA
3107 Posts |
Posted - Sep 20 2008 : 5:39:25 PM
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The money for the current bail-out is from a fund that was set up in the 30's - the money is already there. I listened to a really good forum on the BBC this morning, very informative. I don't think that we will have a total melt-down, but the large banks will have to do business differently. The regional banks are in good shape for the most part except that they get money from the big investment banks, however since the gov't is backing the bad debts we should see an end to the snowball...but things are going to have to be different. Thats not a bad thing either,
Amy Grace
Farmgirl #224
"use it up, wear it out, make it do, or do without" |
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
Posted - Sep 20 2008 : 7:57:15 PM
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It's going to be interesting to see how this all plays out. I am feeling good about becoming more self sufficient and while I feel so bad for all those who are hurt or will be hurt by all this, I can try and look on the bright side. Maybe more people will plant a victory garden. Perhaps they will become known as Financial Victory Gardens!
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 |
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herbquilter
True Blue Farmgirl
891 Posts
Kristine
Bonney Lake
Wa
USA
891 Posts |
Posted - Sep 20 2008 : 10:50:23 PM
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This has been a very intersting week. After listening to my talk show favs; Dave Ramsey & Glenn Beck, I feel even better about putting things up, food storage, of course "victory" gardening and the like. This really is a call to be more prepared and independent.
Blessings,
Kristine ~ Mother of Many, MRET & Wellness Coach
http://herbalmommasda.blogspot.com/
Farmgirl Sister #97
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
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levisgrammy
True Blue Farmgirl
9327 Posts
Denise
Beavercreek
Ohio
USA
9327 Posts |
Posted - Sep 21 2008 : 06:07:19 AM
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I don't understand. if everyone takes all their money out of the bank won't that make things worse because then there will be "runs on the banks" which will in turn cause the banks to go under.
Is this where they bring in the whole one world currency deal? Everything done electronically?
Dh and I have slowly been putting money away because we have no insurance, health,life etc. No retirement either. He owns his own business which is fairly new. I am wondering how long before they come up with the next thing that is for our own good. What do you all think?
Denise
farmgirl sister #43
"Take a lesson from the teakettle, though up to its
neck in hot water...it sings!"
www.torisgram.etsy.com |
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graciegreeneyes
True Blue Farmgirl
3107 Posts
Amy Grace
Rosalia
WA
USA
3107 Posts |
Posted - Sep 21 2008 : 09:14:36 AM
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Denise - definitely if everyone took all their money out of the bank it would be a disaster!!
I think our government is so tied to our economy at this point that they will do anything possible to avoid a financial disaster.
Amy Grace
Farmgirl #224
"use it up, wear it out, make it do, or do without" |
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Kris Sherrill
True Blue Farmgirl
131 Posts
Kris
Chickamauga
Ga.
USA
131 Posts |
Posted - Sep 21 2008 : 6:15:18 PM
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I don't know about all this financial business at all. My husband listens to Dave Ramsey religiously and he seems to think things will be ok. He said if we'd remember after 9-11 that everything went crazy for about 3 months or so and everyone panicked. He said don't panic now, either.
So my husband said not to rush to the bank and take our $23.85 out right yet. It would cost more in gas to go the 20 miles to the bank. So we'll just leave that alone for now.
What I am worried about is his 401K. He's 60 and Dave R.( I think it was him) said if you're young not to worry about retirement savings and not to pull your kids college funds out, either. But that if you're a year or two away from retirement that's a different story. I'd hate to lose all that. |
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
Posted - Sep 21 2008 : 6:46:00 PM
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Kris- I would suggest paying the money to talk to a reputable financial counselor. You don't want to lose retirement money either by fees to take out early or by market flux. They will best be able to advise you and you husband. *hugs*
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 |
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shepherdgirl
True Blue Farmgirl
1008 Posts
Tracy
California
USA
1008 Posts |
Posted - Sep 21 2008 : 8:27:19 PM
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I was thinking the same thing Denise is. I believe it was the "run on the Banks" that caused a huge part of the depression way-back-when. Yes, MOST banks are FDIC insured, but I would think that in a MAJOR market crash that wouldn't matter much. How much money is REALLY in the coffers? Someone will get left out when the cash runs out.
Anyway, I'm not worried. I bank with Moby Dick (Bank of America) and he's about to swallow up WaMu!!!!
Hey, is it TRUE that the JAPANESE own Bank of America? (Or else they are the top investors) Anyone know for sure? It's something I heard-- from several people actually. Kind of Ironic isn't it? "Bank of AMERICA" not even owned by AMERICANS!!!? (LOL!!!)
Life is not measured by the number of breaths we take, but by the moments that take our breath away. ~~ George Carlin |
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kissmekate
True Blue Farmgirl
890 Posts
Kate
Delano
Minnesota
890 Posts |
Posted - Sep 21 2008 : 9:13:29 PM
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I am not too worried, but I will definitely be taking out a little more cash here and there and tuck it away, just in case.
I have also started to stock up a little bit more on incidentals.
Don't miss out on a blessing, just because it isn't packaged the way you expected. ~MaryJo Copeland |
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levisgrammy
True Blue Farmgirl
9327 Posts
Denise
Beavercreek
Ohio
USA
9327 Posts |
Posted - Sep 22 2008 : 05:51:05 AM
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Tracy,
You don't mean Walmart do you? I was under the impression that the Walton family still owned Walmart. Am I confused? I think it is always good to be prepared not matter what.
Denise
farmgirl sister #43
"Take a lesson from the teakettle, though up to its
neck in hot water...it sings!"
www.torisgram.etsy.com |
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
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soapmommy60543
True Blue Farmgirl
2197 Posts
Ann
Oswego
IL
USA
2197 Posts |
Posted - Sep 22 2008 : 07:24:58 AM
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I agree wholeheartedly. There has never been a better time to put all of our farmgirl skills to use.
quote:
Originally posted by herbquilter
This has been a very intersting week. After listening to my talk show favs; Dave Ramsey & Glenn Beck, I feel even better about putting things up, food storage, of course "victory" gardening and the like. This really is a call to be more prepared and independent.
Blessings,
Kristine ~ Mother of Many, MRET & Wellness Coach
http://herbalmommasda.blogspot.com/
Farmgirl Sister #97
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Sage
True Blue Farmgirl
207 Posts
Pam
Worland
Wyoming
USA
207 Posts |
Posted - Sep 22 2008 : 10:09:46 AM
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Check out this bank rating at cnn.com/Robin. At the bottom of the page is a link to "How Sound Is Your Bank?" You can look up your bank and find out how it is rated. Sage:)
Farmgirl sister #140
www.heritagedesigns.etsy.com |
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Across the Fence: Is anyone concerned about the whole bank crisis? |
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Is anyone concerned about the whole bank crisis?
