Serious Question....

[sorchawench]

Is anybody else seriously freaked at the banking crisis we are having? I've heard some people say that Credit Unions are the way to go right now. What do you think?

Comments

[jonfmorse.livejournal.com]

"Places that don't make bad mortgages" are the way to go, regardless of whether they're a bank, credit union, or S&L. The issue is more that the dollar's on its way to becoming worthless the more they keep creating new money to throw at the problem.

[sorchawench.livejournal.com]

We have a mortgage through a company named US Bank Home Mortgage, which used to be Leader Mortgage. Makes me wonder how they're doing.

[inanna.livejournal.com]

i am glad that we have our accounts with our credit union. Although DH does have a WaMu credit card... wonder if that will happen... bet HIS debt won't be forgiven. Bet i won't get that 0% WaMu card i was pre-approved for, either. :P

[sorchawench.livejournal.com]

They say as long as your bank is insured, you should be okay. But I have a feeling I might take our next checks out and redeposit them into the credit union account I have, but never use.

[greeklady.livejournal.com]

I don't have much money to be worried about it. Just makes sure you guys are keeping your money at a place that is insured.

[sorchawench.livejournal.com]

My bank has the usual FDIC coverage. But a shoebox under the mattress is starting to look good.

[lynx212.livejournal.com]

*shamefully admits* I have little knowledge of whats going down and have avoided the topic because banking and such bores me to tears. I have seen the headlines on the news and on the web. Is it really that bad? *has no clue*

[sorchawench.livejournal.com]

Well, we've had several large banks declare bankruptcy. Lehman Brothers, Morgan Stanley, Fannie Mae and Freddie Mac, and last night Washington Mutual. That frightens me, the value of the dollar is going to go to shit. If it gets too bad, people will panic, yank all their cash out and cause a crash. The Dow has been low. Seriously low, because of all of this. And America is was the pinnacle of the world financial market. If our system starts failing, it will affect the world.

Now, the Government is currently fighting over a bailout plan that is going to cost 700 million dollars. Only no one can agree on what to do. Bush and the Dems have a plan. The GOP is refusing to negotiate.

[stormdancer80.livejournal.com]

Hate to point this out but...there's already a run on the banks happening. It's been said on the news tonight and that is what made Washington Mutual (amongst other things) crash last night. Most Joe's, like you and me, aren't worried because we have banks that are FDIC insured. Different types of accounts and banking things have different insured limits. The most you will find is about $800,000 insured limit. It's all the really rich people that have lots of money in these banks, that fall over the limit by large amounts, are making a run on the bank. When I bank suddenly looses several billion or trillion dollars from many very wealthy people pulling out, they can't survive. Thus why Washington Mutual (part of the reason anyway) crashed last night. Us normal people don't have to worry about it. But the wealthy will seriously grind the economy to an abrupt halt if they keep pulling their money out of banks.

[stormdancer80.livejournal.com]

Oh..and the guy that announced this tonight, who has a really good pulse on the economy, also announced that at least 5 more banks will fall next week. But he refused to mention them by name. This guy's name...Jim Kramer, host of Mad Money on CNBC.

Jim said Washington Mutual lost something like 17 Billion dollars in 5 days from money managers pulling all their funds out of the bank because they had WAY more money than what was insured.

Normal people don't have over 100,000 in the bank. Most banks insure up to 100,000 for normal accounts for everyday people.

[sorchawench.livejournal.com]

Edit: 700 Billion...not million dollars.

[seraaalicious.livejournal.com]

I am a bit scared too. I use Bank of America and they just bought Merril Lynch, so I think they are doing OK and they are big enough that I am sure that it is insured. But ya never know in these times?? Sometimes I feel like taking all of my money out of the bank and hiding it under the mattress. :P

[sorchawench.livejournal.com]

For small money people, taking most of your money out, probably won't make too much of a difference, unless ALL of us do it. But panic yanking money could cause more problems than we realize. Great Depression bring anything to mind? I've heard a lot of people talking about switching to a credit union if you're worried about your bank. Switch to a *local* smaller credit union. Research them, or talk to one of their bankers to find out which is the better option.

[seraaalicious.livejournal.com]

Oh, I would never actually take all of my money out of the bank. I was just saying that its scary.

I feel confident enough with B of A.

[pandorarose.livejournal.com]

We transferred to a credit union awhile back but not because of the crisis ... honestly ... I just think we're all fucked.

[rhyannon.livejournal.com]

Yeah, all this drama is one of the reasons that I've stuck with Wells Fargo since 97 when I first opened my own bank account in Austin. They're the only bank that's continually had US based support and everything is FDIC insured so I doubt there's anything to worry about there. I guess, being broke and owning practically nothing of my own is working to my advantage these days since I don't have to worry about mortgages and the bigger insurances and the like. Hell, my biggest worry is keeping my utilities paid so the lights/water stays on, my car & it's insurance paid so they don't come repo it, and food in the house for myself and the furry monsters. It seems like the more money, land, investments you have.. the more shit like this can fuck with you and what you own or are paying off in the long run, which is just sad and worrying. But, for those of us barely making it, well not a lot changes despite it all. We still have the same problems today as we did a week ago and we're still juggling the same way this month as we will be next month.

/angst