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Old 01-01-2009, 08:42 PM
 
Location: Cary, NC
1,036 posts, read 3,726,212 times
Reputation: 505

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Quote:
Originally Posted by MrsDino View Post
BUT, if consumers were not so materialistic! we would not need to continue to barrow money, to pay and RE-PAY for the "things" that we need to own so badley!!! It is our responsiblity as consumers to take charge of our own finances. The government is not to be blamed for consumers ignorance. I have not heard ONE consumer step up and "say Government Agency ABC held a gun to my head and made me take this loan thay "I" could not aford "OR" that "I" did not understand. Yes they are encouraging us to take on the debt, that is how these companies will survive. This goes for the smallest items to the over priced houses, cars, etc... If you ( companies) hang it out there, you should not be surprise when someone ( good credit or bad) reaches out grabs it and takes it! Oh! so sorry, you wanted EVERYONE to pay it back as agreed? LOL!LOL!
Thank you CORPORATE AMERICA for providing consumers with such horrible products, that has cost EVERYONE!! Take a stand consumers, save and buy it when you have "SAVED" the cash to pay for it! Then buy it!

I agree 100%.... which is why blaming banks for all the problems in the housing industry is pointless. No bank told someone making $30,000 a year to buy a $500,000 home with no money down and no savings.

Yes, the banks were stupid for making such programs but people went along and took the money. No one held a gun to their head, they all wanted to "keep up with the Jonses" and buy into the hype. Riches from real estate flipping, treat your home like an ATM for cars, plasma TVs and vacations. Everyone got greedy from the top bank CEO to the regular person buying a house. Sure some were lied to and fraud was committed, but many others just bought into marketing and sales pitches.

We love to blame the auto industry for pollution and McDonalds for our weight problems, but as consumers we have the choice to buy efficient cars and healthy food. We have a choice and when we buy an iphone or other toy because of a slick marketing campaign and our desires, we have to remember that its the job of companies to sell us. Its our job to make wise decisions about our budgeting and savings.

That said, its still a shame that instead of spending money on financial literacy, helping the working poor or other benefits... they are spending it to encourage us to dig ourselves in deeper. They are taking our own tax money (and taxes will have to go up eventually) and using it to bail out banks and encourage more people to buy homes, cars and other luxury items. I guess there aren't many other options at this point though
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Old 01-01-2009, 09:46 PM
 
437 posts, read 701,465 times
Reputation: 306
Quote:
Originally Posted by MrsDino View Post
BUT, if consumers were not so materialistic! we would not need to continue to barrow money, to pay and RE-PAY for the "things" that we need to own so badley!!! It is our responsiblity as consumers to take charge of our own finances. The government is not to be blamed for consumers ignorance. I have not heard ONE consumer step up and "say Government Agency ABC held a gun to my head and made me take this loan thay "I" could not aford "OR" that "I" did not understand. Yes they are encouraging us to take on the debt, that is how these companies will survive. This goes for the smallest items to the over priced houses, cars, etc... If you ( companies) hang it out there, you should not be surprise when someone ( good credit or bad) reaches out grabs it and takes it! Oh! so sorry, you wanted EVERYONE to pay it back as agreed? LOL!LOL!
Thank you CORPORATE AMERICA for providing consumers with such horrible products, that has cost EVERYONE!! Take a stand consumers, save and buy it when you have "SAVED" the cash to pay for it! Then buy it!


It's time to TAKE BACK AMERICA.
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Old 01-03-2009, 08:42 AM
 
4,247 posts, read 9,537,690 times
Reputation: 1463
Quote:
Originally Posted by jimmyP View Post
Would have much rather had $100,000 in 12 mth CD's in 2008 than in equities.
I have $100K in a 12 month CD. I had to put the money somewhere in September!
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Old 01-03-2009, 02:00 PM
 
Location: Orlando, Florida
43,857 posts, read 45,515,747 times
Reputation: 58647
Quote:
Originally Posted by MrsDino View Post
BUT, if consumers were not so materialistic! we would not need to continue to barrow money, to pay and RE-PAY for the "things" that we need to own so badley!!! It is our responsiblity as consumers to take charge of our own finances. The government is not to be blamed for consumers ignorance. I have not heard ONE consumer step up and "say Government Agency ABC held a gun to my head and made me take this loan thay "I" could not aford "OR" that "I" did not understand. Yes they are encouraging us to take on the debt, that is how these companies will survive. This goes for the smallest items to the over priced houses, cars, etc... If you ( companies) hang it out there, you should not be surprise when someone ( good credit or bad) reaches out grabs it and takes it! Oh! so sorry, you wanted EVERYONE to pay it back as agreed? LOL!LOL!
Thank you CORPORATE AMERICA for providing consumers with such horrible products, that has cost EVERYONE!! Take a stand consumers, save and buy it when you have "SAVED" the cash to pay for it! Then buy it!
What a terrific post!
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Old 01-03-2009, 02:47 PM
 
706 posts, read 1,187,352 times
Reputation: 438
Quote:
Originally Posted by rcarrillo View Post
I agree 100%.... which is why blaming banks for all the problems in the housing industry is pointless. No bank told someone making $30,000 a year to buy a $500,000 home with no money down and no savings.

Yes, the banks were stupid for making such programs but people went along and took the money. No one held a gun to their head, they all wanted to "keep up with the Jonses" and buy into the hype. Riches from real estate flipping, treat your home like an ATM for cars, plasma TVs and vacations. Everyone got greedy from the top bank CEO to the regular person buying a house. Sure some were lied to and fraud was committed, but many others just bought into marketing and sales pitches.

We love to blame the auto industry for pollution and McDonalds for our weight problems, but as consumers we have the choice to buy efficient cars and healthy food. We have a choice and when we buy an iphone or other toy because of a slick marketing campaign and our desires, we have to remember that its the job of companies to sell us. Its our job to make wise decisions about our budgeting and savings.

That said, its still a shame that instead of spending money on financial literacy, helping the working poor or other benefits... they are spending it to encourage us to dig ourselves in deeper. They are taking our own tax money (and taxes will have to go up eventually) and using it to bail out banks and encourage more people to buy homes, cars and other luxury items. I guess there aren't many other options at this point though
Agree with some of your points, however, the fundamental responsibility of banks is to manage risk. They abdicated that responsibility in favor of profits. There is blame on both sides, however, if banks did there jobs, there would be no person with $30K income buying $500K houses. This would result in less $500K houses which would have prevented the bubble.
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Old 01-06-2009, 01:07 AM
 
Location: Cary, NC
1,036 posts, read 3,726,212 times
Reputation: 505
Quote:
Originally Posted by jimmyP View Post
Agree with some of your points, however, the fundamental responsibility of banks is to manage risk. They abdicated that responsibility in favor of profits. There is blame on both sides, however, if banks did there jobs, there would be no person with $30K income buying $500K houses. This would result in less $500K houses which would have prevented the bubble.

I completely agree that banks ignored risk almost completely. They didn't factor nearly enough into the programs were offered or the rates. You need to identify the risk and compensate for them and banks ignored that in order to make short term profits.

The primary responsibility of banks is to make profits however, not to manage risk. Managing risk is an important component in making profits long term of course... but at banks, like any business, profits are #1. Ignoring risk might make you a killing today but sooner or later they come due.

The government is doing the same thing. Buying bad assets, handing out money and encouraging spending with lower rates. That might give us a short term boost, but over the long term is a bad idea. Unfortunately, most politicians and CEOs think about the next election or stock option and not where the government/country will be in 10-20 years because of the policies.

Neither does the general public however. In the end, I side with personal responsibility. I don't blame McDonalds for advertising to me if I gain wait. They are doing their job as a company and trying to sell me something, its up to me to do my research and make informed decisions on my life.

Unfortunately, too many lenders and real estate agents also gave out bad information that the media and public just latched onto without much thought. As long as the money was flowing, everyone ignored reason.
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Old 01-06-2009, 12:26 PM
 
823 posts, read 2,022,720 times
Reputation: 424
Quote:
Originally Posted by MrsDino View Post
I have worked in banking for 27 years. It is difficult to watch, as those good banks are fighting to keep the new business coming in. While the bad performers are fighting to stay in business all the while luring customers away with high rates on CD's ( that they are loosing money on). Yes 4% is high! Most consumers are not seeing the big picture! Banks want to help the consumer, but the consumer is so busy chasing the proverbial carrot that they don't see that banks are looking to help those who are "relationship" customers! I see it daily, the bank will work to save a "relationship" customer, but not a "single" account holder. It is a two way street!, you need to make money and so does the bank. No you will not get rich OR retire investing in CD'S *Pay attention consumers find a bank that fits your needs, be smart with your finances,( don't over extend your self, pay your bills on time) know your banker ( it helps when YOU need something!) Remember, to the big banks ( paying those high rates 4%) you are just a number! " Do you know who your banker is????"

You are kidding right? It is the big banks that are slashing rates. It is the smaller banks who are offering the rates that make sense. If you have a decent amount of money there is no reason not to rate chase.

An example, Wamu/Chase has a 1.5% rate on savings accounts. Why exactly would I take that instead of 4% elsewhere? On a $25k account the difference is hundreds of dollars a year. And all Wamu/Chase does is lower the rate. Same thing at SunTrust, a mid-sized bank in the SE. Their savings account is 0.99% and has a monthly fee on top of that piddly rate!

There are lots of banks out there and with ACH transfers moving your money is as easy as ever. Unless you are in the bank constantly why would you not go after the best return on your money? To not do so is just giving money away.

You are right about finding a bank that "fits your needs" but at the top of the "needs" list should be a very high rate of return on the money you park there.
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