U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-07-2008, 08:31 AM
 
47 posts, read 34,869 times
Reputation: 20

Advertisements

Quote:
Originally Posted by pghquest View Post
Yeah but Fannie and Freddie cant go backrupt because they have the ability, under force of law, to modify their fees and to increase the Mortgage insurance rates on everyone else.

They are also backed by federal guarantees, which is how they get investors to buy into them, so if they go under, the country is in huge trouble.
They can most certainly go bankrupt. They are private businesses, albeit with an implied government backing. Them going BK would just mean the end of buying houses with mortgages, for the most part, unless like I mentioned earlier interest rates went through the roof.

It won't be the end of the world if it happens. America has adapted and will continue to do so.
Reply With Quote Quick reply to this message

 
Old 02-08-2008, 08:14 AM
 
Location: Windsor, Vero Beach, FL
897 posts, read 2,599,438 times
Reputation: 474
I think the point is - in today's uncertain economy - don't put all your eggs in one basket. If you work in the financial industry, make sure your not heavily overloaded in those stocks from your own company. Also, make sure your deposits are well under FDIC limits.
Reply With Quote Quick reply to this message
 
Old 02-08-2008, 10:45 AM
 
5,090 posts, read 9,983,777 times
Reputation: 3961
Quote:
Originally Posted by GeminiGal View Post
I think the point is - in today's uncertain economy - don't put all your eggs in one basket. If you work in the financial industry, make sure your not heavily overloaded in those stocks from your own company. Also, make sure your deposits are well under FDIC limits.
And in things other than US Dollars and Dollar denominated items -- like US Corporate Stocks, T-bills, etc.

Pesoes anyone?
Reply With Quote Quick reply to this message
 
Old 02-09-2008, 01:12 PM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 21,715,966 times
Reputation: 3587
Quote:
Originally Posted by pghquest View Post
Actually banks can and do fail. What is backed is the deposits, meaning that when a bank owes more money to the depositors in its bank, its insolvent. Yes, the federal government makes the deposits good, but they take over managing the bank, liquidating the assets, and the depositors lose their interest.
Maybe I should have worded that better. They can fail- they just cannot "FAIL". The bank can lose money and go out of business (or be put out of business by the FDIC) but then the government steps in, opens the bank back up and runs it or finds a solvent bank to take it over. My mother had money and a safe deposit box in a bank that failed (Boulevard State Bank of Kansas) and she did not lose a dime of money or anything in her box. She went after the FDIC opened up- got all her things and her money with no problem. Interestingly enough, the bank is now a mortuary! How fitting!
Reply With Quote Quick reply to this message
 
Old 02-09-2008, 01:17 PM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 21,715,966 times
Reputation: 3587
Quote:
Originally Posted by Jim Toole View Post
They can most certainly go bankrupt. They are private businesses, albeit with an implied government backing. Them going BK would just mean the end of buying houses with mortgages, for the most part, unless like I mentioned earlier interest rates went through the roof.

It won't be the end of the world if it happens. America has adapted and will continue to do so.
It would be the end of housing- at least from an investment point of view. One of the reasons for the run up and appreciation in home prices is the ability to get cheap loans to buy real estate. If people had to pay cash or pay sky high rates to finance, home values would fall like a rock.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top