How is all this financial craziness affecting you...

[papsrus]

Ironically -- (or maybe obviously?) -- I was listening to a discussion on public radio today on the whole market meltdown and one of the things that's happening is people are taking money out of the stock market and putting into ..... banks!! And so, what's happening to some extent is these banks are becoming more stable as people bail out of the stock market and throw their money into money markets, savings accounts, etc. So in a strange way, the market meltdown is helping the banks on one level.

Of course, in many cases their problems can't be solved by deposits, I would guess. Still, it can't hurt that banks are to a large extent benefiting from people pulling their money out of the market.

[sidewinder]

I've been driving less, put foreign holidays on hold for a while and added insulation to the house. Other than that it's business as normal - maybe a few more contributions into the mortgage and pension funds over the next 5 years as a buffer. Oh, and less vinyl.

Edited October 11, 2008 by sidewinder

[Tom 1960]

Job wise, I'm pretty secure(knocking on wood) and the wife is a nurse, no lack of demand there. My 401K is invested in the S&P 500. I have a pretty good idea what my losses are already without having to look at my statement. I also have an IRA which is invested in mainly small - mid cap companies which has done amazingly well the past 10yrs. or so and up to recently has weathered a good amount of the downside. I also own a couple international stocks funds. I believe I'm too heavily weighed in stocks, but I've known this for sometime and chose to do nothing. I have a goal to retire in 10 yrs. Hopefully recent events wont jeopardize this.

[BillF]

My wife and I have four pensions - all from government sources, as we were both employed in education. We no longer have a mortgage and our savings are divided equally between government National Savings and a building society which has remained mutual, i.e. never floated on the stock exchange and retaining a communal aspect. But I'm still worried!

[papsrus]

Job wise, I'm pretty secure(knocking on wood) and the wife is a nurse, no lack of demand there. My 401K is invested in the S&P 500. I have a pretty good idea what my losses are already without having to look at my statement. I also have an IRA which is invested in mainly small - mid cap companies which has done amazingly well the past 10yrs. or so and up to recently has weathered a good amount of the downside. I also own a couple international stocks funds. I believe I'm too heavily weighed in stocks, but I've known this for sometime and chose to do nothing. I have a goal to retire in 10 yrs. Hopefully recent events wont jeopardize this.

Sounds pretty much like me, except my wife's not a nurse. ... and I'm diversified pretty much as you describe, except it's all within my 401k, which accounts for the lion's share of my retirement investments. Amazingly, the company I work for also still has a pension plan also. It's closed now to new employees, but I got in under the wire back in 1989, so that'll help if and when I do get around to retirement. But I'm looking at that 10 year time horizon, like you.

[catesta]

Ironically -- (or maybe obviously?) -- I was listening to a discussion on public radio today on the whole market meltdown and one of the things that's happening is people are taking money out of the stock market and putting into ..... banks!! And so, what's happening to some extent is these banks are becoming more stable as people bail out of the stock market and throw their money into money markets, savings accounts, etc. So in a strange way, the market meltdown is helping the banks on one level.

Of course, in many cases their problems can't be solved by deposits, I would guess. Still, it can't hurt that banks are to a large extent benefiting from people pulling their money out of the market.

Some are also going out and buying personal safes and keeping the cash on hand.

Sales of safes grow as economy slides

[sidewinder]

My wife and I have four pensions - all from government sources, as we were both employed in education. We no longer have a mortgage and our savings are divided equally between government National Savings and a building society which has remained mutual, i.e. never floated on the stock exchange and retaining a communal aspect. But I'm still worried!

Bill - you're as safe as houses.

Did I say 'houses'?

[BillF]

My wife and I have four pensions - all from government sources, as we were both employed in education. We no longer have a mortgage and our savings are divided equally between government National Savings and a building society which has remained mutual, i.e. never floated on the stock exchange and retaining a communal aspect. But I'm still worried!

Bill - you're as safe as houses.

Did I say 'houses'?

I hope you're right, Sidewinder. I have a nervous disposition

[BillF]

My nervousness has increased this morning on hearing that insurers are factoring in a one-in-twenty chance of the UK defaulting and that ex-cabinet minister, Peter Hain, is calling for an emergency plan for the provision of water, power and trains in case the companies providing them fail!

[sidewinder]

My nervousness has increased this morning on hearing that insurers are factoring in a one-in-twenty chance of the UK defaulting and that ex-cabinet minister, Peter Hain, is calling for an emergency plan for the provision of water, power and trains in case the companies providing them fail!

Oh sh*t ! Back to 1973 again. Better stock up on candles and cans of beans then..

[papsrus]

Oh sh*t ! Back to 1973 again. Better stock up on candles and cans of beans then..

This seems like a dangerous combination to me ...

[Hardbopjazz]

Yet some more banking woes.

JPMorgan profit sinks as credit deteriorates By MADLEN READ, AP Business Writer

1 hour, 49 minutes ago

NEW YORK - JPMorgan Chase & Co.'s profit tumbled 84 percent in the third quarter after it took big hits from souring mortgage investments, leveraged loans and home loans.

Profit at the New York-based bank, considered one of the stronger players in the current financial meltdown, came in better than Wall Street anticipated. But the deterioration seen in all types of loans — from home equity loans to prime mortgages to credit cards — bodes badly for a banking industry that is requiring unprecedented investment from the federal government.

Full article

[Hardbopjazz]

As of 9:15 AM on October 24th

The stock market in the US didn’t get to open today and it is down a thousand points. All hell has broke lose here where I work. All these banks are in panic mode. I say it is time to buy stocks. When it doe rebound you will be wealthy.

But first you need money.

Edited October 24, 2008 by Hardbopjazz

[Hardbopjazz]

World stocks dive to 5-year lows

Digg Facebook Newsvine del.icio.us Reddit StumbleUpon Technorati Yahoo! Bookmarks Print By Mike Dolan and Jeremy Gaunt Mike Dolan And Jeremy Gaunt – 1 hr 25 mins ago Play Video AP – Asian stocks tumble for 3rd straight day

Slideshow: Stock Markets Play Video Video: Tokyo stocks plunge 9.6 percent to five-year low AFP Reuters – A foreign exchange dealer works at a trading room in Tokyo October 24, 2008. (Toru Hanai/Reuters) LONDON (Reuters) – Global stock markets plunged again on Friday to their lowest in five years and major currency rates gyrated wildly on intense concern about a worldwide recession, corporate damage and fragile emerging markets.

Wall Street stock index futures, pointing to large U.S. losses later, were frozen on and off as they fell as much as rules allow in one day.

European shares lost more than 8 percent and Japan's Nikkei tumbled almost 10 percent.

The dollar and yen -- considered among the safer currencies -- surged to multi-year highs against European currencies such as the euro and sterling as investors repatriated investments in search of shelter and speculation of global interest rate cuts weakened those currencies with the highest rates now.

Full article

Edited October 24, 2008 by Hardbopjazz

[sidewinder]

Definitely time to stock up on those cans of beans..

[Jazzmoose]

But first you need money.

I knew there was a catch...

[Niko]

But first you need money.

I knew there was a catch...

one thing i've been wondering: if i get a credit and the bank goes bancrupt, do i have to pay it back ...

[no need for an answer unless it's no (plus the details)]

[J Larsen]

I haven't taken as bad of a market hit as most, so I've been lucky there. OTOH, my company is slow and I'm not optimistic about my bonus, which is a significant component of my compensation. All in all, I guess I can't complain.

[Free For All]

I just got my investment statement a few days ago and damn! Big losses with the bottom nowhere in sight.

[Spontooneous]

Employer just announced more layoffs are coming. Fourth time this year. By the end of the year, we'll have lost 36 percent of our staff.

[papsrus]

I heard on NPR today (well, yesterday) that as highly leveraged as U.S. households are, at something like $1.35 in debt for every $1 of income, households in Great Britain are even more leveraged, to the tune of something like $1.70 of debt for every $1 of income. And, as in the United States, it's mainly tied in to the real estate bubble.

This surprised me.

[sidewinder]

I heard on NPR today (well, yesterday) that as highly leveraged as U.S. households are, at something like $1.35 in debt for every $1 of income, households in Great Britain are even more leveraged, to the tune of something like $1.70 of debt for every $1 of income. And, as in the United States, it's mainly tied in to the real estate bubble.

This surprised me.

That's probably true. A lot of idiots have been buying second holiday-homes and buy-to-lets and leveraging themselves into the stratosphere. They will be well and truly shafted over the next few years.

Edited October 25, 2008 by sidewinder

[Guy Berger]

I just got my investment statement a few days ago and damn! Big losses with the bottom nowhere in sight.

It could be ugly... I am inclined to think that unless you absolutely need to tap into your savings in the next decade, it's best just to grit your teeth and sit tight with a well-diversified portfolio. The worst thing to do at this point is to engage in some panic selling. Of course, I am just an economist, not an investment expert.

Guy

[ejp626]

I heard on NPR today (well, yesterday) that as highly leveraged as U.S. households are, at something like $1.35 in debt for every $1 of income, households in Great Britain are even more leveraged, to the tune of something like $1.70 of debt for every $1 of income. And, as in the United States, it's mainly tied in to the real estate bubble.

This surprised me.

That's probably true. A lot of idiots have been buying second holiday-homes and buy-to-lets and leveraging themselves into the stratosphere. They will be well and truly shafted over the next few years.

Someone was pointing out that on a per capita basis, the UK has already spent and/or committed considerably more than the US on bailouts. Iceland aside, the UK is probably the most exposed of Western European countries and has the least diversified economy to try to pull through this crisis. What I don't understand is with all the general unhappiness of following the US's lead (on everything) and how poorly this has worked out for them is that one of the political parties hasn't reinvented itself as an anti-US party. I think it would do quite well. The problem is that the natural party would be Labour, and its leaders continue to orient themselves towards the US and away from Europe.

[papsrus]

What I don't understand is with all the general unhappiness of following the US's lead (on everything) and how poorly this has worked out for them is that one of the political parties hasn't reinvented itself as an anti-US party. I think it would do quite well.

Yes. Apparently that's what the Democratic Party did here, according to some folks.