a possible second depression?

sorry to be the bearer of bad news but who here shares my fear that we may enter a second depression...


http://news.bbc.co.uk/2/hi/business/7615931.stm


looks like a bank just took a dump and from what people are saying AIG is the next major bank out of 5 that are going to say sayonara

apparently 3 of the 5 major banks are going to bankrupt


do you think im being over paranoid? or do you think this is valid and we should be afraid

 

I dont think it will happen.

 

If we are, there really isn't much that you can do except ride it out.

 

its just sad that these idiots haven't learned their lesson...

must not have paid too much attention in history class or any of their business and accounting classes in college...

it's like HOW can a bank go bankrupt? You really have to make a dumb mistake to do it...it's amazing that our lives are in the hands of these fools

 

It's their own fault, it boils down to lending money to people who should have never gotten a home loan in the first place.

But, I'm sure a big chunk of people either lost their job and couldn't afford to make the payments, going into foreclosure, or were on an ARM and should have been on a fixed mortgage.

edit:

If we do go down that downward spiral, I'll ride it out the best I can and hope for the best.

 

well, it's two sided. the bank uses loopholes to give loans to people who can't afford them, thinking they'll just get them with interest in the end. the people who can't afford them take the load knowing full well they would never be able to make the payment, and they either get foreclosed upon, or declare bankruptcy themselves.

moron's on each side, nobody is the victim except the person who gets penalized because they pay their taxes and make their mortgage payment each month.

 

essentially though its exactly what happen in the 30's everyone bought on credit then couldn't pay it back and then POOF "hey greg?! wheres our money?!"

 

*side note*

the guy at my work that has lehman brothers as an account, just took a 175k per month pay cut. They spent over 37 million with CDW in the past 12 months. Ouch

 

im starting to see my senile grandpa as not so senile...im gunna go hide my money in the ground and say screw banks...

 

we have this thing called the FDIC now...

 

I have no money in the bank, and its def not 100K. Aint skeered.

 

I HOPE wells fargo goes down the tubes, worst bank EVER

 

TCF is worse IMO

 

My bro was offered a job with them about a year ago...good thing he declined!

 

It was pretty foreseeable. Government should have never given freddy mac and fannie may
an opportunity to go into such a risky business. Government "secretly" back them up saying to the shareholders and CEO's that they will help out if any problem arises. So it was simply a pyramid that was going to eventually collapse. Slow down in the job market made it so many people either did not get raises or lost jobs their adjustable rates went up and they could not pay anymore.

 

makes me feel good about being in college..with all these banks collapsing whats gunna happen to my loan...if one of the banks i took the loan from takes a **** and dies?

 

i know but who knows...my loan might be a little higher in rates :S

 

Well it could be that you will not have to pay your loan back. However you WILL have to pay back for the money that government bailed the banks with.

 

sweet taras thanks for that im gunna go crawl in a bunker and and die lol

 

lol, a bit of drama is always good

and btw, the government will find you in a bunker too. So i would recommend leaving the country or suicide is good too.

 

hahahaha

 

I have only had good dealings with Wells Fargo. Also I do not think that they are going anywhere soon. IIRC I heard from someone I know that Wells Fargo did not go hail mary into the home loans thing like lots of other banks did, so they have far fewer foreclosures to deal with.

This is kind of frightening. However I think that it will end up alright. The Gov will back the banks (or try to) and we will pay for it. But it is a better alternative to all the banks going belly up and everyone withdrawing all of their money to hide under their mattress. We have hindsight to guide us away from another great depression/economic epic fail. Although I still think the world is going to hell in a hand basket.

 

oh, you'll have to pay your loans back. They'll make sure of that.

 

Haha, that is for sure.

 

...and we'll have to bail them out...it's like selling things on eBay where they hit you with multiple levels of fees. :-/ Though they DID loan YOU money, so...you should probably try to pay that back :ugh:

 

i think there should be a federal death penalty for anyone that decides to take a loan out and doesn't pay it that would discourage the dummies from taking out loans

of course im just talking in extremes here

 

very extreme. They should have a death penalty for Bank CEO's for trying to make money on everyone and not think about consequences and you know what really sad, that those CEO's are not going to loose anything(except their jobs) they are not liable for anything pretty much. Government should take all their money away, but again most of those CEO's have their money off shore somewhere registered on a trust.

 

what happen to the days when govt broke up monopolies none of you all were old enough to remember unless someones like 50+ around here but Bell communications back in the 60s had basically a monopoly going and the govt was like Oh hell no and now we have divisions from bell like AT&T and such..its just like...it gets pushed around by CEO's of companies and stuff..its kinda ridiculous

 

I didn't realize you were 50...

Why is it always the CEO that is the scapegoat of the company? Sure they make a lot of money, sure they have a lot of responsibility, but they are not signing every single piece of paper that leaves the company. CEO's can't be sued, just like if you were to screw up in your company and cause damage that costs money, your company cannot sue you for it. There are exceptions to this such as neglect, etc.

A depression would be a pretty large downfall, what we are seeing is a recession. Economic downturn that isn't necessarily turning the country/world completely upside down. Unemployment rates for the great depression were 25% of the working population. It would be pretty hard to hit that these days.

And to recap, your money is insured for up to $100k in one account, $200k total in two different, unaffiliated banks. Also, this whole thing has two sides. Sure, someone can blame the fact that they were given a loan they couldn't afford on the banks, but what ever happened to personal accountability? Shouldn't we be able to say "thanks for the offer of that loan, but it says my monthly payment is going to be $xxxx and i only make $yyy".

We live in a society where everyone feels that they are entitled to the same things that they other guy is, and that they have been victimized somehow, nobody wants to take responsibility for anything.

If you want the same thing your neighbor has, and everything to be equal, go live in china or cuba and see how well they are doing it.

 

I think there are problems on both sides of the fence with this. You have a-holes taking out loans they can't afford and not doing their homework to research what they are actually buying(read your f-ing paperwork before you sign it!!!). You also have a-hole banks that are giving loans to these people. The CEO's aren't necessarrily to blame. Most of the time they have no clue whats happening where the rubber hits the road.

 

Agreed.

But how can the government preach fiscal responsibility when they're running billion dollar a year deficits?

 

WF makes much of thier money through fees, not through loans.
This is normally "bad" but in this market, it has it's advantages.

 

This! People just take whatever they can get, without thinking. People should realize their limits and live within them. Either way they should still be accountable for their decisions. If you take out a big loan and cant afford it the bank should still be able to get its money back, even if it means you loose a kidney.

 

Or Sweden or Finland that have one of the highest standards of living and lowest poverty rates...

 

Very good point. Because government does not care much. Its not their money that they spend. Its taxpayers money. Government is like CEO's of corporations. Bush and Bernanky( whatever you spell his name) will not be held accountable for any decisions they made. They will leave their position (with millions of dollars anyway) at most. We need to hold those people in the government accountable for what they have done. But that never happens. Why US get to put presidents of other countries on trial but here no one gets in trouble for screwing up stuff.

 

Thats because they are all surrounded by beautiful blonde women all the time. lol

 

I don't buy into much about what the government preaches lol :laugh:
They can't even balance their own books much less start dipping their hands into all this mess. Its gonna cost the taxpayers a fortune if they keep baililng all these companies out.

 

Wells fargo has only been good to me, seems the only ones with bad dealings are the ones that dont manage thier money very well..

 

I've had good dealings with the wells fargo as well. I've had major issues with USBank and after hearing how TCF treats their employees I have no interest in giving them any more of my biz either.

 

You missed the entire point of that statement. China and Cuba are communist governments; the citizens get what the government tells them they can have.

 

Even more then that. The dollar is falling quickly due to these poor fiscal practices. Food, gas, all imports are costing Americans more every day. This cost adds up much more quickly then wasting our tax money.

And all our elections can talk about is if we should drill more, how to lower taxes, and when life begins.

RMRF hit it on the head. Americans in general have a very pronounced sense of entitlement, and absolutely no one is doing anything to stop this trend.

 

I havent had good luck with US bank either, its probably mostly my fault, but hey, I need to bitch about something And dont get me started on TCF, lucky I personally havent delt with them, but my poor wife has.

 

Just to clarify I'm not disagreeing with anything you or RMRF said. I'm in absolute agreement that there is a huge ripple effect from all of this. The bank/mortgage part is just a piece of a much larger puzzle. Americans need to start taking responsibility for their own actions instead of relying on their gov for everything or blaming everything on the "evil" corporations. Some corporations do not act in the best interest of the public but not all of them operate that way.