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-   -   Banks really suck right now. (http://www.njfboa.org/forums/showthread.php?t=37372)

cdacda13 09-25-2008 11:12 PM

Banks really suck right now.
 
I think I have money in there.

Unless you have over 100,000, the government covers you, luckily.

SteveR 09-25-2008 11:41 PM

I just saw that. I saw this coming from last week when Lehman went under and WaMu stocks dropped like 75% in a hour.

NJSPEEDER 09-26-2008 03:15 AM

It won't matter to the average account holder if they go under because your money still exists and will be bought up by whoever the next bank coming along is. The way things are going either Bank of America or TD will buy out the account holdings and assume the debt since they are the only two with substantial retained earnings in the last year. I would say TD is the more likely since Bank of America has been on a spending spree in the last 6 months, gobbling up 2 or 3 more smaller regional banks and buying into some investment companies.

SteveR 09-26-2008 08:10 AM

Quote:

Originally Posted by NJSPEEDER (Post 491877)
It won't matter to the average account holder if they go under because your money still exists and will be bought up by whoever the next bank coming along is. The way things are going either Bank of America or TD will buy out the account holdings and assume the debt since they are the only two with substantial retained earnings in the last year. I would say TD is the more likely since Bank of America has been on a spending spree in the last 6 months, gobbling up 2 or 3 more smaller regional banks and buying into some investment companies.

Yea, I'm sure somebody will buy them out. TD also just bought Commerce.

BonzoHansen 09-26-2008 08:12 AM

WaMu has been on the brink for easily over a month (publicly). You'll get your $$ back, but it may take some time.

Mike 09-26-2008 08:37 AM

time to hide mine under the bed

foff667 09-26-2008 08:57 AM

wow thats nuts

NJSPEEDER 09-26-2008 09:15 AM

It was announced that they were already purchased from debt. With assets over 300 billion, yes you can infact have crazy amounts of money and be broke, the BBC reported. I caught it as I was running out the door, so I am not sure who.

I am betting WaMu will get parted out. For the amount of assets they have, their stuff is spread out all over the place. Broken into regional chunks it would be a good deal for anyone looking to take over a piece of a particular regional market.

The news said that the buy out was based on teh stock value, which is in teh ****ter, so it may have been picked up for as low as 10% of the break up value. That is insane. Someone rich is about to get way the **** richer.

-Tim

Tsar 09-26-2008 09:29 AM

Welcome to JPMorgan!

2RARE84s 09-26-2008 09:41 AM

I got this in an email, and I LIKE IT! :) I think this would actually work! and this is just talking about the 85billion dollar AIG bailout, not the 700 billion dollar bailout that is being debated.

Quote:

Hi Pals,

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads

Put away money for college - it'll be there

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs

Invest in the market - capital drives growth

Pay for your parent's medical insurance - health care improves

Enable Deadbeat Dads to come clean - or else


Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed
by one of our candidates for President.


If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J. Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!

Tsar 09-26-2008 09:48 AM

Quote:

Originally Posted by 2RARE84s (Post 491931)
I got this in an email, and I LIKE IT! :) I think this would actually work! and this is just talking about the 85billion dollar AIG bailout, not the 700 billion dollar bailout that is being debated.

1. Chain mail is for idiots.
2. You would get 425 dollars, not 425,000.
3. Learn basic math.

2RARE84s 09-26-2008 09:56 AM

Maybe I should have calculated it myself... and why the h#ll would I need to know basic math when there is a calculator on every computer?....:moon:

SteveR 09-26-2008 10:00 AM

I just read that if JP Morgan Chase didn't buy WaMu's personal banking assets, the entire FDIC Insurance Fund would have gone bankrupt, and it would have been first come first serve for trying to get your money and everyone else would have been screwed. Not to mention that if that happened, there would be no more FDIC fund and if another bank went under, everybody would lose everything.

On a side note, I'm watching Wachovia closely as they reported over 12 billion in loses last quarter alone.

Tsar 09-26-2008 10:03 AM

Quote:

Originally Posted by SteveR (Post 491942)
I just read that if JP Morgan Chase didn't buy WaMu's personal banking assets, the entire FDIC Insurance Fund would have gone bankrupt, and it would have been first come first serve for trying to get your money and everyone else would have been screwed. Not to mention that if that happened, there would be no more FDIC fund and if another bank went under, everybody would lose everything.

On a side note, I'm watching Wachovia closely as they reported over 12 billion in loses last quarter alone.

There was an article that we read in class that talked about how FDIC might be next in line to fail... Good times.

SteveR 09-26-2008 10:12 AM

Quote:

Originally Posted by Tsar (Post 491943)
There was an article that we read in class that talked about how FDIC might be next in line to fail... Good times.

WOW :shock: If that happens, we're eff'd

On a side note, another thing set in line to go under is Social Security. For a report for one of my classes last fall I had to do a study on Social Security's stability and future and the timeline for SS going under was under a decade at best, and that was before all this.

BonzoHansen 09-26-2008 10:41 AM

Quote:

Originally Posted by Tsar (Post 491935)
1. Chain mail is for idiots.

:nod::nod::nod::nod::nod::nod:


DC needs to get their act together fast.

CHRIS67 09-26-2008 11:16 AM

FDICerary. Pronounced- fa-dick-er-air-ie

*for those of you who remember sniglets and or Rich Hall.

SteveR 09-26-2008 11:43 AM

http://news.yahoo.com/s/ap/20080926/..._mutual_future

It also says that since the Government had to shut WaMu down, all stockholder lost everything as the stocks were wiped out, as well as TPG Capital that invested $7 billion into WaMu just a few months ago.

BonzoHansen 09-26-2008 12:37 PM

Quote:

Originally Posted by SteveR (Post 491942)
On a side note, I'm watching Wachovia closely as they reported over 12 billion in loses last quarter alone.

You are not alone in that watch...

After WaMu Seizure, Wachovia Faces Market's Fears
09/26 11:46 am (ON)
Story 0608 (WB, WM)

By Marshall Eckblad Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- The seizure of Washington Mutual Inc. (WM) is quickly becoming a problem for Wachovia Corp. (WB).

After federal regulators on Thursday night seized the West Coast thrift and its bloated book of failing home loans, investors have trained their focus on Wachovia, which itself holds piles of risky mortgages.

Wachovia shares recently traded down 23% to $10.58, while the cost of insuring Wachovia's debt against default quickly rose to distressed levels.

Wachovia looks to be in substantially better shape than Washington Mutual before WaMu failed. Wachovia has a loyal and largely affluent banking clientele, and a sizable business of offering investment services to clients through financial advisors.

But Wachovia held more than $122 billion in so-called Pick-A-Pay or Option ARM mortgages as of July 22 - an unwieldy type of loan that has fast become notorious for producing high levels of losses, as well as high levels of risk for banks who wrote them.

Pick-A-Pay loans give some borrowers the option of deferring portions of their monthly interest payments, thereby increasing the loan's balance. While Wachovia has stopped writing the loans altogether, Pick-A-Pays have proved highly problematic for both WaMu and Wachovia since home prices have fallen around the nation even as many Pick-A-Pay loan balances have risen.

Defenders of the Option ARM loans maintain that when banks underwrite these loans correctly, they are both safe and lucrative. But as the credit crisis has widened, Pick-A-Pays have produced rising delinquencies and - perhaps more importantly - unnerved investors.

Wachovia ousted its long-time CEO Ken Thompson in July and replaced him with Bob Steel, a former undersecretary at the U.S. Treasury and a veteran Goldman Sachs Group Inc. (GS) banker.

While Steel has worked quickly to reassure investors and has promised to make the Charlotte firm more transparent, Wachovia's shares have continued their wild ride as investors appear unsure what to make of Wachovia's long-term prospects. The shares dropped below $10 in July, and did so again in mid-September, but subsequently rallied both times to crest above $18.

The Fixer 09-26-2008 01:21 PM

Quote:

Originally Posted by SteveR (Post 491950)

On a side note, another thing set in line to go under is Social Security. For a report for one of my classes last fall I had to do a study on Social Security's stability and future and the timeline for SS going under was under a decade at best, and that was before all this.

Well, that would SUCK!!!!! What would they do with all of our hard-earned $$ that we've paid into that BS over the years? I'm only 34, and have been paying SS taxes for almost 20 years. If I don't get ANY of that money back, I'm gonna be friggin' pissed!!!! And I'm sure I not the only person who feels that way!

SteveR 09-26-2008 01:30 PM

Quote:

Originally Posted by TPI Monte SS (Post 492004)
Well, that would SUCK!!!!! What would they do with all of our hard-earned $$ that we've paid into that BS over the years? I'm only 34, and have been paying SS taxes for almost 20 years. If I don't get ANY of that money back, I'm gonna be friggin' pissed!!!! And I'm sure I not the only person who feels that way!

If I remember correctly, without finding the paper, it's that the increase in how long people live, coupled with the increase in percentage of American's over 65, and the lack of increase in Government pay-ins to SS will result within ten years of more people claiming SS than the SS fund can pay out.

EDIT- I remember one other point. It's that you're paying into a fund at a set rate that doesn't compensate for inflation, so the money you put in 20 years ago, isn't worth the same amount today, so you're in fact LOSING money paying into SS.

Anti_Rice_Guy 09-26-2008 01:42 PM

Quote:

Originally Posted by SteveR (Post 492005)
If I remember correctly, without finding the paper, it's that the increase in how long people live, coupled with the increase in percentage of American's over 65, and the lack of increase in Government pay-ins to SS will result within ten years of more people claiming SS than the SS fund can pay out.

EDIT- I remember one other point. It's that you're paying into a fund at a set rate that doesn't compensate for inflation, so the money you put in 20 years ago, isn't worth the same amount today, so you're in fact LOSING money paying into SS.

And since more people will be retired than in the workforce. My generation can't pay for all the baby boomers, not enough of us.

SteveR 09-26-2008 01:47 PM

Quote:

Originally Posted by Anti_Rice_Guy (Post 492008)
And since more people will be retired than in the workforce. My generation can't pay for all the baby boomers, not enough of us.

EXACTLY. It's transformed, because of the very sudden swing in workforce to retiree balance, from you paying into your own SS account for your retirement, to the SS fund so far behind that you are right now paying for the current wave of retirees, and because of the fact that the money they put in is worth less than what they are taking out, it gets further and further in debt to itself as time goes by until it won't be able to sustain itself.

Anti_Rice_Guy 09-26-2008 01:53 PM

Quote:

Originally Posted by SteveR (Post 492010)
EXACTLY. It's transformed, because of the very sudden swing in workforce to retiree balance, from you paying into your own SS account for your retirement, to the SS fund so far behind that you are right now paying for the current wave of retirees, and because of the fact that the money they put in is worth less than what they are taking out, it gets further and further in debt to itself as time goes by until it won't be able to sustain itself.

Which is 2020 I think it was...or 2018? We talked about it in Poli Sci my senior year of HS

SteveR 09-26-2008 01:56 PM

Quote:

Originally Posted by Anti_Rice_Guy (Post 492011)
Which is 2020 I think it was...or 2018? We talked about it in Poli Sci my senior year of HS

That sounds about right, I took the class last fall and they said a decade or sooner, so that would be late 2017.


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