breaking news: House defeats $700B financial markets bailout

[strmrdr]

http://news.yahoo.com/s/ap/20080929/ap_on_bi_ge/financial_meltdown

 

[strmrdr]

fed prints more money in response:

http://news.yahoo.com/s/ap/20080929/ap_on_bi_ge/fed_credit_crisis_12

That is one of the worst moves they can make.
Expect the dollar to drop.

 

[strmrdr]

stocks tumble at the news

http://news.yahoo.com/s/ap/wall_street

 

[~*Alexis*~]

i hate our government. personally I think they should just let them fail. They got themselves into this mess they should have to get themseves out of this mess....didn''t WaMu exc just get a 13 mil severence package?

 

[strmrdr]

...
Was down over 700 at one point now down almost 600

 

[strmrdr]

Date: 9/29/2008 3:00:36 PM
Author: ~*Alexis*~
i hate our government. personally I think they should just let them fail. They got themselves into this mess they should have to get themseves out of this mess....didn't WaMu exc just get a 13 mil severence package?

I'm against the bail out also as it stood.
All it did was put off the unavoidable for a few weeks and cost the taxpayers a trillion dollars when it was said and done.

 

[Bia]

FYI:

Bye-bye Wachovia...

Who''s next? Taking bets here...

 

[elle_chris]

very scared to see how this all going to end.

didn''t know about the 13mill severance package but i can''t say i''m surprised. what I do now is that I know have Chase bank instead of Wamu. Not sure how much I like that.

 

[Kaleigh]

I''m scared.

 

[mrssalvo]

Date: 9/29/2008 3:03:14 PM
Author: strmrdr


I'm against the bail out also as it stood.

me too.

 

[strmrdr]

Date: 9/29/2008 3:12:15 PM
Author: mrssalvo

Date: 9/29/2008 3:03:14 PM

Author: strmrdr



I''m against the bail out also as it stood.

me too.

What I told my rep that I wanted a ban on short selling and jail time for those responsible and a ban on golden parachutes that if he voted for the bail out I would never support him again.
Still looking to see how he voted.

 

[Clairitek]

Wachovia too now?? Everything in my little financial world is through Bank of America- one credit card, our mortgage, and then two checking accounts (joint and my personal). I really hope that they will come out of this as unscathed as possible.

To be honest I don''t understand a lot of whats going on right now. This lack of understanding has taken me from being comfortably numb/blissfully ignorant to being all out paranoid/scared/anxious and hoarding money.

My FF and I were discussing what we should do with our money. We thought of everything from stuff it under our mattress to spend it all now before the dollar is so devalued that our savings will amount to litter box lining in a few months. We''re just starting out so I suppose we don''t have a whole lot to lose but the whole thing is just so frightening.

There maybe be another thread on this already but what sort of things are you doing to safe guard yourselves and your finances from being hit really hard by this financial crisis?

 

[purrfectpear]

I moved out of all my stock positions in February. Nothing to be scared of. As for banking, I don''t keep more than $100K in any one place.

 

[luckystar112]

Dh and I have stock (dominion), but he doubts that our stock will be affected.
Anyone know if we should be worried? It''s down about 1.18 right now, so not much, but still.

 

[strmrdr]

Date: 9/29/2008 3:09:10 PM
Author: Kaleigh
I''m scared.

Its going to be rough.

 

[NewEnglandLady]

We are licking our financial wounds today, though we pulled out as soon as the vote started, so at least we stopped the bleeding.

We''re going to have to watch the market and completely re-assess our strategy. We couldn''t have started getting risky with stocks at a WORSE time (this spring). It''s painful, but at least we have more to invest so if the market really does crash, we''ll just start buying. As for now, it''s just going to take months to make back what we''ve lost. I feel like I''ve been run over by a truck.

 

[strmrdr]

Date: 9/29/2008 3:37:13 PM
Author: luckystar112
Dh and I have stock (dominion), but he doubts that our stock will be affected.

Anyone know if we should be worried? It''s down about 1.18 right now, so not much, but still.

If its a good company and you didn''t overpay for it then let it ride.
Taking the short view is what brought all these companies down, take the long view.
They are in the energy sector which imho is a good place to be right now.

 

[VegasAngel]

One day at a time Economize, economize (Not a bad thing, anwyay)-that is what I tell myself. Seriously, I need to stop watching the news, everything is starting to bother me. Besides the economy, my thing now is worrying about the possibility of a terror attack.

.....

 

[elle_chris]

It''s starting to hit Europe too. Fortis bank went down over the weekend.

 

[~*Alexis*~]

I just don''t get how some people can be so reckless.

*you went and got a mortgage for a house you could not afford+
*you do not have the income to pay back this mortage +
*you have a house which has depreciated in value+
* You cannot sell the house in this market


=your fault.

means Not MY FAULT! I should have have higher taxes because someone wanted to keep up with the Jones''....if that was the case I would go get K''s Mercedes (after Ellen of course

)

Some people are just plain dumb.

 

[MichelleCarmen]

Date: 9/29/2008 3:28:26 PM
Author: Clairitek


My FF and I were discussing what we should do with our money. We thought of everything from stuff it under our mattress to spend it all now before the dollar is so devalued that our savings will amount to litter box lining in a few months. We're just starting out so I suppose we don't have a whole lot to lose but the whole thing is just so frightening.

There maybe be another thread on this already but what sort of things are you doing to safe guard yourselves and your finances from being hit really hard by this financial crisis?

I split my $ up into two banks and am also opening a third checking this week. It feels safter *to me* to have my money spread around, not just stuck in one place. Oh, and I DO have an old WAMU account that I never got around to closing, but will do so this week since it only has $50 that's been sitting in the account for months. I don't want to bank with Chase.

Plus, I have cash that's NOT in a bank account. Silly as this sounds, I know a few people who have buried cash in their back yard. They have acreage, so it'd be impossible for any person to find it.

My fear is the price of food is going to skyrocket and I'm stocking up our storage room with non-parishables to be on the safe side. Target has tons of snack foods and if it comes down to it, I'd rather feed my kids Ritz crackers for a month, then let them go hungry. Surely that is over-dramatic and we still will be able to buy milk, but what if THAT goes up to $10.00 a gallon

I may need to buy a cow.

 

[Allisonfaye]

I am amazed at how many people think that this isn''t going to affect them. If the value of the dollar is plunging, it ain''t gonna matter if you have it stuffed into your mattress because it won''t BUY ANYTHING. This is not just about people buying a house that they couldn''t afford. It is about international banking being halted and payrolls not being made because banks won''t lend to each other because they have no capital. To all of you people who think this doesn''t or won''t affect you, you are in for a rude awakening. Millions of people could lose their jobs.

 

[Allisonfaye]

Date: 9/29/2008 4:06:36 PM
Author: ~*Alexis*~
I just don''t get how some people can be so reckless.

*you went and got a mortgage for a house you could not afford+
*you do not have the income to pay back this mortage +
*you have a house which has depreciated in value+
* You cannot sell the house in this market


=your fault.

means Not MY FAULT! I should have have higher taxes because someone wanted to keep up with the Jones''....if that was the case I would go get K''s Mercedes (after Ellen of course

)

Some people are just plain dumb.

Maybe not your fault but if they don''t do something soon, YOU will be affected by it, like it or not.

 

[phoenixgirl]

I''m all about natural consequences (letting the companies sink themselves), but I think the bail-out was about keeping our economy afloat, not giving a hand-out to irresponsible people or companies. Based on the way the market reacted when news was announced it had been shot down, obviously the in-the-know type folks are not happy that no plan was reached. It''s not about what bank you have your money in, or who took on a mortgage they couldn''t afford. Now we''re in triage mode, and the analysts/big thinkers are trying to figure out how we''re all going to land as softly as possible.

 

[Allisonfaye]

Date: 9/29/2008 4:33:38 PM
Author: phoenixgirl
I''m all about natural consequences (letting the companies sink themselves), but I think the bail-out was about keeping our economy afloat, not giving a hand-out to irresponsible people or companies. Based on the way the market reacted when news was announced it had been shot down, obviously the in-the-know type folks are not happy that no plan was reached. It''s not about what bank you have your money in, or who took on a mortgage they couldn''t afford. Now we''re in triage mode, and the analysts/big thinkers are trying to figure out how we''re all going to land as softly as possible.

Right.
I think a lot of people who feel like they don''t really understand what is going on should spend some time watching CNBC. Then you might realize this is not about just saving your neighbor who bit off more than he could chew or rescuing some CEO who got $22m for messing everything up.

 

[MichelleCarmen]

Date: 9/29/2008 4:30:00 PM
Author: Allisonfaye
I am amazed at how many people think that this isn''t going to affect them. If the value of the dollar is plunging, it ain''t gonna matter if you have it stuffed into your mattress because it won''t BUY ANYTHING. This is not just about people buying a house that they couldn''t afford. It is about international banking being halted and payrolls not being made because banks won''t lend to each other because they have no capital. To all of you people who think this doesn''t or won''t affect you, you are in for a rude awakening. Millions of people could lose their jobs.

That is why I''m stocking up on food. I was talking to a mommy friend who seems kind of main-stream (whereas I am a conspiracy theorist!) and hestitated but then mentioned stockpiling food and was shocked to hear in response from her that she is doing the same think. Filling a pantry with canned goods.

 

[Allisonfaye]

Date: 9/29/2008 4:38:37 PM
Author: MC

Date: 9/29/2008 4:30:00 PM
Author: Allisonfaye
I am amazed at how many people think that this isn''t going to affect them. If the value of the dollar is plunging, it ain''t gonna matter if you have it stuffed into your mattress because it won''t BUY ANYTHING. This is not just about people buying a house that they couldn''t afford. It is about international banking being halted and payrolls not being made because banks won''t lend to each other because they have no capital. To all of you people who think this doesn''t or won''t affect you, you are in for a rude awakening. Millions of people could lose their jobs.

That is why I''m stocking up on food. I was talking to a mommy friend who seems kind of main-stream (whereas I am a conspiracy theorist!) and hestitated but then mentioned stockpiling food and was shocked to hear in response from her that she is doing the same think. Filling a pantry with canned goods.

Well, I don''t think it is unreasonable.

I just called my Congressman to register my opinion and check how he voted. I am certain they will revote later in the week.

 

[phoenixgirl]

One of my newspaper students was bemoaning the fact that she thinks all this economy news is boring, so I came up with some example of, say, somebody who works at a clothing store or restaurant. Well, when prices of food and gas are way up, and the investments of the wealthier people who usually drive our economy plummet (or become inaccessible temporarily as buy-outs happen), then Sally Store Worker/Waitress is going to lose her job because nobody is going to spend $ of stuff that isn't essential. So then Sally will have to give up her apartment and move back in with her parents, and the guy who bought the condo Sally was renting as an investment when it was worth 25% more won't be able to find somebody else willing to rent it for that much and won't make his mortgage and will declare bankruptcy, and Sally's parents will have to postpone retirement because their investments aren't what they were a year ago, etc., etc.

The student said, hmmm, you know, sales have been really down at where she works in a florist shop. And I said, right, see, it's a domino effect; every little thing is interconnected.

And this conversation was weeks ago. This is much scarier/worse than before.

P.S. This has to affect our friends and members in the diamond industry.

 

[cara]

Date: 9/29/2008 4:06:36 PM
Author: ~*Alexis*~
I just don't get how some people can be so reckless.
*you went and got a mortgage for a house you could not afford+
*you do not have the income to pay back this mortage +
*you have a house which has depreciated in value+
* You cannot sell the house in this market
=your fault.

I know exactly how it happens, I was sitting there with the loan officer 4 years ago telling us that housing never goes down around here, its a great investment and completely safe, goes up 10-15% per year every year, no one loses money in this area once you get in the game, its no problem to have 60% of our pay go to housing costs, its a high rent area, so of course banks are willing to let you take on more than the guideline amounts! This was the nice man from Citibank, not some fly-by-night operation! I am really glad my husband wanted meet with the mortgage guy so I could have the memory of this conversation, but of course even more glad that we did not buy.

But say you instead:
Bought a house you could afford at the top of the market a few years ago
Did have the income to pay the mortgage but now lost your job and need to move for a new one.
The house has dropped precipitously in value
You could sell it for a loss and cover it (painfully) with other savings but no one can get a loan to pay you because the banks have no money. So the house sits, you sit in the wrong place, dragging down the economy by being unemployed and minimizing your consumption.

I'm not saying the bailout would work, but there is a real risk that the credit meltdown will affect people that did nothing "wrong" and the lack of credit available will spiral into other areas of the economy. That's why there are any politicians at all voting for this wildly unpopular piece of legislation.

Oh, and remember to save some of your annoyance for the suits who recklessly gave the loan to the person who couldn't afford it, fluffed up the appraisal documents, repackaged the loan into a security no one could understand, sold it, and then sold an insurance policy on security to further confuse the people who look at balance sheets. And reserve a final wallop for the regulators and legislators that let it all happen.

 

[bee*]

Date: 9/29/2008 3:55:05 PM
Author: elle_chris
It''s starting to hit Europe too. Fortis bank went down over the weekend.

Yep they''re scared for some of our banks over here also.


Sending prayers for all of you guys in the US. It will be rough but you guys can get through it.