I didn't know this yet??!!!

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FishingBuds

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Lehman Brothers Bankruptcy, Merrill lynch Sold :shock:

thats a bit of a concern isn't it????

seen this quote today

"The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments."

I mean these were the BIG DOGS correct? we shouldn't really see them sell off or collapse? I'm not trying to be doom and gloom here but its a bit of a eye opener for me. Do I miss something here or do I have a right to be concerned?
 
FishingBuds said:
Lehman Brothers Bankruptcy, Merrill lynch Sold :shock:

thats a bit of a concern isn't it????

seen this quote today

"The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments."

I mean these were the BIG DOGS correct? we shouldn't really see them sell off or collapse? I'm not trying to be doom and gloom here but its a bit of a eye opener for me. Do I miss something here or do I have a right to be concerned?

Be concerned but go back and read who owns Fannie May and Freddie Mac as of last week. The whole banking thing is a mess. over 1/2 of all banks are expected to close within a year - WOW!
 
I'll be the first to admit I don't know near enough about investing my money. We've been thinking of using Edward Jones to help with my old Navy TSP money. But anyhow, back on topic. Bit of a concern? I would think so. Market closed down 504 points What the hell is it gonna do for the rest of the week? Almost thinking no investment is safe any more.
 
Captain Ahab said:
FishingBuds said:
Lehman Brothers Bankruptcy, Merrill lynch Sold :shock:

thats a bit of a concern isn't it????

seen this quote today

"The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments."

I mean these were the BIG DOGS correct? we shouldn't really see them sell off or collapse? I'm not trying to be doom and gloom here but its a bit of a eye opener for me. Do I miss something here or do I have a right to be concerned?

Be concerned but go back and read who owns Fannie May and Freddie Mac as of last week. The whole banking thing is a mess. over 1/2 of all banks are expected to close within a year - WOW!

I remember that, and the one where no one could get thier money out of the bank, and now this. If it comes(depression)- I'm not ready for it(financially that is)
 
In our little town, a new bank opened earlier this year, and at the moment there are two new ones being built. Got me!
headscratch_shrug_smilie.gif
 
Interesting thing I learned about loans.....

Say a bank loans $100,000....they have to keep a certain % of that on hand, say it's 5%.

They now have a note for $100,000 that's considered as asset, so they can turn around & write another loan on $95,000 on that asset.

That $95,000 becomes another asset (less the 5%). I can't recall if they can do this 3 times or more, but you can see how they're charging interest on money that doesn't even exist.

The Fed (Federal Reserve) does basically the same thing. Every dollar in circulation is loaned (by the Fed, which has nothing to do with the government, it's owned by rich international bankers) to the US with interest. Ever wonder what "backs" those dollars? It used to be gold & silver.......now it's nothing, but we're paying interest on monopoly money.

Seems like a pretty good racket, wish I could do it.........
ST
 

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