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OT-Bank Failures

Discussion in 'Uncategorized Threads' started by 635 G, Jul 15, 2008.

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  1. 635 G

    635 G Well-Known Member

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    Is your local bank in trouble? According to the financial papers there are close to 90 banks in serious trouble. Which bank is next? Wait for the good news from GM this morning. Hitting targets might be the last of our worries.
    Neither OBama or McCain can save our economy. I don't know what we have to do. To be very frank I'm really worried. I think we're headed for a national meltdown.

    Lou
     
  2. shannon391

    shannon391 Active Member

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    Big brother will step in to save the day. And China hasn't run out of money yet.
     
  3. mizzou

    mizzou TS Member

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    635 G : Turn off your T.V....We call it "media driven drama" in my business..No bank depositors are losing any money..DO NOT buy into the philosophy that "it's bad, so it will only get worse"...Average percentage gain after a recession is 20% in the first year..Don't sell out and miss it..Mizzou
     
  4. Easystreet

    Easystreet Well-Known Member

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    According to the news report I saw on TV yesterday, customers of the bank that is going bankrupt in California (I think) WILL likely lose some of any excess money over $100,000 they have in any account. That's because FDIC doesn't insure over $100,000 per account, but there are different ways that accounts can be set up by a couple so that they, in effect, have more than $100,000 per person that is insured.

    If you have over $100,000 in any one bank, you better check to see that the accounts are set up such that it's all insured (or at least as much of it as you can).
     
  5. stokinpls

    stokinpls Well-Known Member

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    "This is largely created by the media during an election year.

    Take gasoline. If an average American drives 20,000 miles a year (more than average) and gets 20 MPG (about average) then each $1 increase in the cost of gasoline represents $1,000 per year. So we are up $2/gallon and that means a whopping $2,000 per year. Six bucks a day. Yeah, for some that is a big deal but the press has everyone in panic mode so they are dumping their cars to buy fuel efficient cars at the expense of many thousands of dollars with 4+ year return on investment.

    The same overreaction is going on with housing, banking, etc. Banks? Remember the 1980's? Over 800 banks failed with the S&L crisis and somehow we survived. There are only 90 banks currently on the watch list. And if certain Democratic Senators would keep their mouth shut, even Indymac would not be in crisis. You don't think that was a political ploy in an election year?

    Are we in a down cycle? Of course but what idiot doesn't recognize that all markets are cyclical? What the media is portraying as "American's are suffering" is simple an economic speed bump. You want suffering? Go visit most other countries of the world. We are doing just fine and instead of the glass half full, you should be out there investing in bargains... I am."

    Not sure who said it, but I'll their credibility is as good as CNN's.
     
  6. jimsw

    jimsw Member

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    Take a deep breath and relax. There are 8500 banks in the US. So far 5 have failed. The world hasn't ended. Stop watching the TV news and those idiot news actresses who don't know anything about financial markets. With all the gloom and doom it is just possible it is a better time to buy than sell. BTW I was an investment manager for 33 years and have seen most of this before.
     
  7. Allen-MX8

    Allen-MX8 Member

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    The F.D.I.C. insurance of $100,000 is "per Depositor" not per account.

    Allen-MX8
     
  8. larryjk

    larryjk Member

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    Allen-MX8, My Bro-in-law told me how to list accounts so the $100k covers each account. They have to have different names, not just different account numbers.
    Example: You, you and the wife, wifes name only, etc. You have to trust the people you are listing the accounts under. They are the ones owning the accounts. Oh! My bro-in-law is a recent retired bank pres.
     
  9. Allen-MX8

    Allen-MX8 Member

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    You said "different names"--that is the key. Unless the regulations have changed (I am a retired bank officer) it is still "per depositor".

    I went through a bank closing and I was charged with the responsibility that there would be no un-insured depositors---and there wasn't.

    It is, I think, the "ownership" of the accounts that is important.

    Allen-MX8
     
  10. omgb

    omgb Well-Known Member

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    Talk about stupid. I see folks waiting in line to empty their accounts at IndyMac. These people have maybe 5 or 6K in their accounts. One idiot had $60. So they wait in line....why not mosey over to another bank, write a check against your FDIC insured account and poof, instant funds transfer with no waiting. Instead, the uneducated panic, listen to the news, panic some more and then stare into the headlights. Geez, some folks are so dense.

    Got another news flash, lots of focus is on CountryWide and its sale to BofA. CW had a very strict policy concerning verification of income and risk regarding sub-prime mortgages. They wouldn't buy them, period. Lots of smaller lenders tried to husstle these bad risk cases on CW but CW didn't bite. Now CW is taking the majority of the heat for something they didn't do. Folks should take a much closer look at WaMu and Wells-Fargo.
     
  11. grnberetcj

    grnberetcj Active Member

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    Take all your money out of the Bank(s) and buy lead shot.

    Or....get into oil speculation...it works!

    Curt
     
  12. Easystreet

    Easystreet Well-Known Member

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    Allen,

    There are various ways that a person or couple can have considerably more than $100,000 coverage from FDIC on their accounts at one bank. For example, they can have Single Accounts, Joint Accounts, POD (Payable on Death) Accounts, and others. It's too lengthy to explain in this post, but if you (or anyone) want to know more about it, click on the link I provided above in this post.

    Easystreet
     
  13. John Thompson

    John Thompson TS Member

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    The individual savings accounts are insured. I say, let the stock holders and executives take a bath. They made the profits on the lousy loans they made and many got huge bonuses and profits. Let the greedy take the hit.
     
  14. halfmile

    halfmile Well-Known Member

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    Bobble Head Bernanke sez all is well with Freddie and Fannie. Yup. Uh-huh.

    On the other note, my local paper has oodles of forclosures, and Countrywide has more than a few. The Illegals figured it out. Get a shill to buy a house, put 12 people in it, and don't pay for 3 years. What a deal.

    HM
     
  15. Dove Commander

    Dove Commander TS Member

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    Locally, 62% of the bad loans were to first time buyers which was subsidized by fed dollars in an attempt to increase "Home Owners" under lighter requirements. The feds are really great at managing money and programs aren't they? Can't wait till their in charge of health care.
     
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