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Old 10-09-2008, 02:47 PM
 
Location: Chino, CA
1,458 posts, read 2,898,870 times
Reputation: 546

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Quote:
Originally Posted by HappyTexan View Post
ROFL..is that the FDIC site bascially telling people that they are overreacting and saving too much ?
Not sure... I think the chart just shows deposits in both commercial and savings institutions that are members of the FDIC. I would think banks like it when they get more deposits since it allows them to become more liquid. But, short-term savings and money markets tend to be less beneficial than CDs as they have to remain more liquid.

Household Debt has also improved greatly in the past quarters:
Household Debt Service and Financial Obligations Ratios

Which shows very well that Americans are adjusting away from a consume with debt nation.

Things are very dynamic and the country as a whole is changing.

-chuck22b
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Old 10-09-2008, 03:30 PM
 
Location: Hope, AR
1,505 posts, read 2,758,485 times
Reputation: 242
I thought you were the one buying stocks now

Quote:
Originally Posted by CarolinaCowboy View Post
It is now, turn on the news! This is huge! We are doomed now folks! All of us! Might take a few days to see the empty stores but they are coming. Invest in plywood, for cover all the closed stores and businesses.

Thanks congress, thanks a lot, now, get the FUC out of OUR country, all of you filthy lying bastardds, move to Cuba, maybe they will buy your BS there!
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Old 10-09-2008, 05:05 PM
 
Location: CO
1,599 posts, read 3,006,655 times
Reputation: 488
Is there a point in which the Dow Jones falls below that will cause a collapse in the system? Or can it continue to plummet without affecting the rest of us? It just dropped another several hundred points today. When should those who aren't invested in the stock market truly start worrying?
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Old 10-09-2008, 05:11 PM
 
705 posts, read 1,144,234 times
Reputation: 427
Quote:
Originally Posted by chuck22b View Post
Not sure... I think the chart just shows deposits in both commercial and savings institutions that are members of the FDIC. I would think banks like it when they get more deposits since it allows them to become more liquid. But, short-term savings and money markets tend to be less beneficial than CDs as they have to remain more liquid.

Household Debt has also improved greatly in the past quarters:
Household Debt Service and Financial Obligations Ratios

Which shows very well that Americans are adjusting away from a consume with debt nation.

Things are very dynamic and the country as a whole is changing.

-chuck22b
Short term deposits are liabilities on a banks balance sheet. In reality, these are debts
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Old 10-09-2008, 05:14 PM
 
Location: Chino, CA
1,458 posts, read 2,898,870 times
Reputation: 546
Quote:
Originally Posted by jimmyP View Post
Short term deposits are liabilities on a banks balance sheet. In reality, these are debts
That was one of my points... short-term savings does pretty much nothing for the economy.

-chuck22b
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Old 10-11-2008, 01:01 PM
 
5 posts, read 7,918 times
Reputation: 11
Quote:
Originally Posted by Refugee56 View Post
The streets were full of people going to work this morning. The large company I work for is still hiring and a large number of people came in for orientation yesterday. The restaurants near where I work are full and there were lines at the movie theatre this weekend. Hardly a scene out of the great depression.

People are using credit cards because they want the points!
The last recession started after the Savings and Loan debacle .I didn't
affect us until about 1 to 2 years later. I remember thinking the same thing
when the stock market crashed then and the S&L problem but it eventually
did. It isn't something that main street feels right away but eventually
you will. You need to start planning for it and cut down your debt and
ramp up your savings.
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Old 10-11-2008, 01:36 PM
 
5 posts, read 7,918 times
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Quote:
Originally Posted by Ludachris View Post
Is there a point in which the Dow Jones falls below that will cause a collapse in the system? Or can it continue to plummet without affecting the rest of us? It just dropped another several hundred points today. When should those who aren't invested in the stock market truly start worrying?
People are of the assumption that this collapse of the financial
system is only going to affect Wall Street .Wrong. Many
of the companies you work for are invested and are traded on the
stock market. Many of them have lost large amounts
worth from the callapse meaning it won't have that to run its
operations and with the credit freeze it can't borrow. Pension
funds have been depleted meaning the elderly aregoing to be affected.Nobody is not going to be effected. Unfortunately no one
knows how bad it it is so everyone
is panicking. Some will be affected more that others but everyone
will be affected you just won't feel it for awhile .It tends to
take awhile to cascade down to main street . Right now the market is correcting itself just like the housing market is doing.
I don't think the majority will feel the affects of this until
the beginning of next year and I think the slowdown will be deep and
lengthy. Many people were living off the easy availability of cheap credit
to finance their lifestyles and that era is coming to an end.People buying
$500K houses here in ca. with a $50k salary is over and should be.
Its going to get very ugly for awhile so hold on.

Last edited by Jethro12; 10-11-2008 at 01:45 PM..
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Old 10-11-2008, 02:55 PM
 
268 posts, read 708,164 times
Reputation: 177
Quote:
Originally Posted by Jethro12 View Post
People buying
$500K houses here in ca. with a $50k salary is over and should be.
Its going to get very ugly for awhile so hold on.

Back in 1994 I made 48k and bought my first house for 144k. I could barely afford the loan with 20% down and my money guy said he had to do some fancy talking to make the powers that be float that loan. I was extremely lucky to make it work and we ate beans and tortillas for many years after. If what you said is true about those numbers, 50k income for a 500k house, someone really cooked the books. Isn't there some kind of banking rules about 45% of income is the limit toward a house mortgage? How do the folks with that situation eat?
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Old 10-11-2008, 03:41 PM
 
5 posts, read 7,918 times
Reputation: 11
Quote:
Originally Posted by carp killer View Post
Back in 1994 I made 48k and bought my first house for 144k. I could barely afford the loan with 20% down and my money guy said he had to do some fancy talking to make the powers that be float that loan. I was extremely lucky to make it work and we ate beans and tortillas for many years after. If what you said is true about those numbers, 50k income for a 500k house, someone really cooked the books. Isn't there some kind of banking rules about 45% of income is the limit toward a house mortgage? How do the folks with that situation eat?
Unfortunately lenders didn't check closely enough and buyers lied about what they made or in Alt-A loans they had good credit and no verifiable income. After reading the crap WAMU did its no wonder they went belly
up.Fascinating read below:

Money: Washington Mutual loaned millions to OC home flippers with a history of fraud | soni, washington, mutual, sonis, family - OCRegister.com

I guess gardeners are making a lot more than I thought because they are purchasing $660K houses. Its not all that unreasonable to see why
the financial institutions are in the position they are in and we are going to pay for it.



.
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Old 10-11-2008, 04:38 PM
 
Location: Great State of Texas
86,093 posts, read 69,904,378 times
Reputation: 27519
Years ago though..Alt-A were for the self-employeed and they did have to furnish prove of income. It was just that they were self-employeed and had a bit more risk.

Alt-A got misused just like everything else but it did serve its purpose back in the day.
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