With all the financial institutions tumbling one after the other, I wouldn't be surprised if commercial banks would be next to go bankrupt.
Eventhough the deposits are insured up to 100,000 dollars, where will the government get all the money to pay all the depositors that will be affected.
It's time to start withdrawing cash.|||The economy is down the people might stage a bank run.|||Perhaps...Wachovia bank is next. They are in talks with Morgan Stanley...Don't know which one is going to "eat up" the other. However, if your bank is taken over by the Feds you do get your deposits insured up to the maximum amount by law...However, all accounts are "frozen" until they decide when to issue you the funds...As for Lehman Brothers investments...the money market funds with some Lehman Brothers investmetns were frozen in what is called a "breaking the buck" scenario...So, yes...there is the possibility that your funds can be frozen until further notice.
Best way to find out where you stand (as for your bank and investments) watch their stock values and changes in CEO and top managers...any word on the street that values are going down...folks are leaving quickly....possible layoffs...restructuring...watch-out..I'v… been seeing these for all those banks that just folded. Also, read the financial news networks on a regular basis to find out the "buzz".|||Who actually has money in bank accounts? Most people pay for everything with debt and only have money in checking between payday and when their bill payments clear, which in the days of electronic payments is usually less than two days per month.
My net worth would be largely unaffected by the complete and total collapse of the banking system, except insofar as the inconvenience of not being able to purchase food with a credit card.|||After Black Tuesday, when the banks crashed, thus setting off the Great Depression, the Fed set up an emergency measure in which they close every bank in America until the withdrawal hysteria is over, which would prevent that happening again. So that shouldn't happen, if things go according to plan.|||unless you need the cash, why would you withdraw it?
It's insured if the bank runs into problems... it doesn't mean you have to go count it every day. Banks merge and get bought out. If your particular bank gets in trouble and is bought out, are you going to go to the teller and demand your money or just order checks with the new banks name? |||The government just prints more, that's the beauty of the system. The FDIC fund has been hit, but it's got some more kick left in it. the problem is the number of depositors with accounts over 100K, they are a dime a dozen. It isn't tine to stuff your mattress with cash|||Im telling you RIGHT NOW the banks will not be able to cover your money. FDIC is going to be worthless because of all the extra spending that this government has been doing. Get your money now and buy gold or silver.|||Banks use fraction-reserve system. Only 10% of their capital is backed up by cash. If everybody starts withdrawing banks will go bankrupt.|||By withdrawing cash, wouldn't you be causing the very bank run that you are afraid is about to happen? I'm just saying.|||No, I don't think that will happen. But I do think people will sell their stocks and mutual funds this week which will cause the market to decrease which will cause more selling, etc. |||If we start withdrawing our cash... ah, well. Fine, make it a self-fulfilling prophecy.|||I hope not but looks like it is headed that way I have a safe at home have not trusted banks for a while now|||It is indeed time for people to grab their cash before it is all gone.
Buy oil !!!|||It is getting scary! |||Thats why i use a credit union!
|||yeap thats what i am going to do once i go home.|||I hope that doesn't happen.. this is not the time for people to panic.|||If everyone starts taking their money out of the banks, everything will come toppling down....
There is news though that yes, other institutions are in difficulty but looking to do mergers with other institutions...
Morgan Stanley is talking with Wachovia to merger with them...
http://www.marketwatch.com/news/story/mo…
And also with Citic Bank from China...
http://www.marketwatch.com/news/story/ci…
Washington Mutual is for sale/auction, with Wells Fargo and Citi Group possibly interested.
http://www.marketwatch.com/news/story/wa…
This is not the best of news, but the Federal Insurance Fund is below what it should be so.
I would imagine that is another reason that new treasury bills are going to be put out. That is a good way for the Govt to raise money and safe for investors....
http://news.yahoo.com/s/ap/20080916/ap_o…
I heard a report on CNN tonight that since markets globally are being affected by this ongoing problem, the Russian and Chinese Markets and others, may offer to help by doing possible bridge loans if more companies take a dive like the one AIG did.
That would stave off world wide market collapse, since most world markets hold stocks in all of our financial institutions that are falling from the housing/credit crisis....
The Global markets can not let ours collapse because they are so tied into us, they could easily collapse as well....
I would think that other insurer's would be affected as well. They all do business with one another, so it's possible other insurance companies are affected. But they should have means in place to handle the situations.
The problem with AIG was within the holding company, not all of its subs.
My family uses a credit union for banking purposes, but all the economists were saying that if people start taking their money out of the banks, that would surely cause a fall...
The suggestion was to use an FDIC insured bank, and keep no more than one $100k account, per bank and everything should be fine. If you have a 401k get together with your accountant and see if there are stocks you should get rid of, buy etc., that are held in that.
They urged people not to take their cash out of the banks because that was not as safe as leaving it in the banks, only make sure you're in an insured bank.
They also stated that Precious Metals was a good bet, Gold/Silver if you have money in the market already or are looking to find a safe place to put it.
It will be a bumpy road for awhile. There are many areas struggling. The auto industry is going to be asking Congress for $50 billion instead of the original $25 billion in order to get themselves set up to start making hybrid cars....I personally think they too need money to shore up their losses, along with the assembly changes needed to make the hybrid cars, but none the less they too are asking for money....
I really don't think that we can continue to bail out companies, which is why the global market communities with money are talking about stepping in to help out, as it affects them as well...
It will be a bumpy ride....but I sincerely believe that if handled properly....(as things should have been before this ever happened)....we will be okay...
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