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Yeah people have been predicting that we are now in another big bubble like the one we got ourselves into before that triggered the bail outs. It is starting to tumble already. After the big bail outs "they" made some changes that would facilitate bail in's in the future and the future is coming.



Presuming that something is going to be done relatively soon, whatever that is, should I be sitting on a decent amount of cash in my bank account? I was thinking I should go ahead now and buy the rest of the stuff I need to finish putting my car back together.



I really don't want to donate against my will out of my bank account to pay off my particular banking institutions debt just because I am a saver. This comes with a reg that was changed that now defines banking customers as unsecured bank creditors. Consequently, in an economic reset, the banking customers that have savings will have their savings essentially confiscated on some percentage to help pay off the bank's debt. The bank that I am with is not one of the huge mega banks that would most likely be the ones to do this but who knows.



I don't even think the rest of the stuff I need to order is going to put that big a dent in my account. It is just sitting in my deposit account. I don't have a separate savings account at the bank.
 

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I don't trust banks much. I trust the large brokerage firms like Schwab or Fidellity a lot more. Seems the US public debt at over 20 trillion is going to get real expensive as rates go up. Somethings gonna give at some point, like the fed inflating it's way out of debt. That would be a good case for gold going up. But this has been in the air for like forever. Maybe the time is coming?
Not too political! Right?
 

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Yeah people have been predicting that we are now in another big bubble like the one we got ourselves into before that triggered the bail outs. It is starting to tumble already. After the big bail outs "they" made some changes that would facilitate bail in's in the future and the future is coming.



Presuming that something is going to be done relatively soon, whatever that is, should I be sitting on a decent amount of cash in my bank account? I was thinking I should go ahead now and buy the rest of the stuff I need to finish putting my car back together.



I really don't want to donate against my will out of my bank account to pay off my particular banking institutions debt just because I am a saver. This comes with a reg that was changed that now defines banking customers as unsecured bank creditors. Consequently, in an economic reset, the banking customers that have savings will have their savings essentially confiscated on some percentage to help pay off the bank's debt. The bank that I am with is not one of the huge mega banks that would most likely be the ones to do this but who knows.



I don't even think the rest of the stuff I need to order is going to put that big a dent in my account. It is just sitting in my deposit account. I don't have a separate savings account at the bank.
The hell you say...Go ahead and buy.

The sky is falling is no way to live...

Allen
 

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The FDIC will insure your account to US$250k as long as your institution is FDIC protected. Unless you have more than that you're OK. If you have more than $250k just hanging out in a checking account you probably need better investment advice.

https://www.fdic.gov/deposit/deposits/faq.html
 

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It's only been predicted for about 10 years now, if they say it long enough it'll happen and the ones saying it will scream "I told you so."

Sent from my Moto Z (2) using Tapatalk

And then they'll spend the next 10 years selling their newsletter to rubes who will point out how they accurately predicted the crash.
 

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Discussion Starter #10 (Edited)
So wait, you think the banks going to confiscate your money?

Sent from my Moto Z (2) using Tapatalk

After the bail out by the Fed, regulations got passed to allow for "bail in's" because the Federal Reserve doesn't have another bail out in them at this point. Actually, they most likely do but they do not want to be responsible so they lobbied the world governments(G20) to pass the bail in scheme and they did. Now saving TBTF banks has been passed on to US.



Under a bail in, something happens similar to what happened on Cyprus. The regulations are part of the Dodd-Frank Act in the U.S. It allows the banks to use bank share holders investments as well as depositors and regular banking customers accounts to bail-in the banking institutions if they are about to fail. Pension funds are also considered to be bail in assets now. Derivatives which are again the most likely cause of banks eminent failure are protected. There is presently close to 300 trillion in derivatives outstanding.



Deposits are considered to be unsecured liabilities. The banks have been now defined to be the owners of your deposits. You are considered to be a creditor. In a declared bail-in situation, FDIC protection doesn't work because the FDIC and its responsibilities in a bail in have been re-written to facilitate the bail ins. I believe that the failing bank is supposed to issue you contingent capital bonds(bail in bonds) for confiscating your money but the likelihood of ever cashing those in later and breaking even is very low.


The thing is full of financial mumbo jumbo but this is what I think I have been able to understand and grasp from reading it all. Gave me a head ache.
 

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Not too political...yet.

I too trust those big ol' financial firms. I used to have my money in Enron. After that I decided to spread out a bit and put half in AIG and the other half at Lehman Brothers. Yep, worked out REAL well there.

OK, I did no such thing. But those companies affected people I know. If the FDIC guarantee is no longer quite what we thought it was, that is disturbing. I feel I need to look into that some more. Thanks for the heads up on that.
 

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This doesn't logic out to me. It's still a bail out for one, bail in doesn't fit. Two the first thing that's going to happen is people are going to remove their cash asap after part of it's been taken so the bank fails anyways.

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My advice, If you are going to buy something, Buy it now. For two reasons, #1. If overseas parts prices rise (which is most likely to happen), You'll beat it to the punch and save some bucks... #2. Buy the parts that you need now while you still can and while they are still out there. You might not just face increased prices, but increased demand as well for parts that can no longer be easily sourced.

Now is the time to buy.

And the recent stock market drop in the last two days?...???? It's most likely just a "Market Correction" based on fears... I would think that it will back to normal within a few weeks. If it's prolonged pain, then that will definitely be a different story.

:eek:)

Tony K.
 

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The FDIC will insure your account to US$250k as long as your institution is FDIC protected. Unless you have more than that you're OK. If you have more than $250k just hanging out in a checking account you probably need better investment advice.

https://www.fdic.gov/deposit/deposits/faq.html
If you have more than $250k in one account, spread it around so that it is in different accounts. Each account is protected up to $250k

If you want to see the condition of the economy, check the federal reserve beige book.
https://www.federalreserve.gov/monetarypolicy/beige-book-default.htm

The real turmoil will be in 2024 when there will be uncertainties. Business and individuals will save their money instead of spend or invest because they do not know who the next president will be and what policy changes will come in Nov. Happens ever 8 years.

If you are really worried about the economy, buy gold. It is not effected by inflation.
 

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Wait a second.... how is the economy starting to tumble already? The stock market is still at over 25k, the highest it ever got to before the current President's inauguration was what? Not even 20k? News reporters and financial advisors said it would never go over 22k but guess what? It's still above 25k. Unemployment is the lowest it's been in half a century, there are more job openings currently than there are people to fill those jobs and I'd say "cousin, bidness is a boomin'." Yes the stock market dips down several hundred points and then goes back up, yes the housing market isn't what it was 6 months ago during the spring and summer. So what? Winter is coming and winter is typically always a slower time of the year for the economy, the housing market and so on. I wouldn't get my feathers all ruffled up just yet, not even close.
 

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There's a prediction out there from a renowned economist saying the Dow should top 40k in 2020...but he is also saying 2019 is going to be bleak. Take that as you will.

If you have 5+ left in ya, now is the time to be sinking cash into the stock market. I prefer Mutual funds, but Vanguard Dividend ETF's are appealing as well. Consider this, for every $100 you put into the stock market in 2008-2009, you would have $170 now on average. Corrections are gold mines to the well prepared. It is yet to be determined if what has happened the last two days will resolve in days, months, or years - such is the way of the market. There's too many factors at play right now to say what exactly is causing the drop, all we know is the future forecast is uncertain.

IMO, if the whole system ever melts down (like, nuclear reactor melt down...1930 on 'roids), Brass and lead will the currencies then.
 

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It is very hard to know what is REALLY happening with the economy and which way it is going. I have been thinking the same thing about real estate for a while BUT if you think about it real estate prices are only now starting to get to where they were back in 2008...I don't think that is necessarily a bad thing or even indicative of inflation. What would you call any investment if you bought it in 2008 for $ 250k, it fell to $ 125k and now is back at $ 250k? You would call it a bad investment. The reason it may look like the sky is falling is because interest rates are inching up. We are witnessing a huge overreaction to the increase. Mortgage rates are still below 5%. There is no need to panic unless they start to trend above 6%/7%. Remember that the stock market is supposedly a leading indicator. It has been on a steady uptick for 9 years. It is time for it to correct a little bit. My advice - relax - don't panic and maybe look for something to invest in while prices are adjusting. Just my $ .02.
 

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It is very hard to know what is REALLY happening with the economy and which way it is going. I have been thinking the same thing about real estate for a while BUT if you think about it real estate prices are only now starting to get to where they were back in 2008...I don't think that is necessarily a bad thing or even indicative of inflation. What would you call any investment if you bought it in 2008 for $ 250k, it fell to $ 125k and now is back at $ 250k? You would call it a bad investment. The reason it may look like the sky is falling is because interest rates are inching up. We are witnessing a huge overreaction to the increase. Mortgage rates are still below 5%. There is no need to panic unless they start to trend above 6%/7%. Remember that the stock market is supposedly a leading indicator. It has been on a steady uptick for 9 years. It is time for it to correct a little bit. My advice - relax - don't panic and maybe look for something to invest in while prices are adjusting. Just my $ .02.
Real estate prices are starting to get to where they were in 2008? Definitely not in the Seattle area they aren't. Back in 2008 you could get a very, very nice home for $500-600k. Now you can't hardly buy anything less than $400k. It's absolutely crazy how much homes are selling for. I bought mine in 2016 for $325k, haven't really done anything to it except just live here, and in two years the value has gone up to over $400k. You can buy homes for under $350k but they're usually in a bad neighborhood, the house very old and in dire need of repair or so on and so forth. As stated before, yes the prices are dropping $15-25k because everyone is back in school and back at their jobs for the winter and most people aren't looking to buy houses during the winter, especially during the holidays. So the prices have dropped some, they typically do that every year and I really don't think it's anything to freak out over.
 
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