Should I put my money in the bank or a cookie jar? Seriously!

NEW -> Contingent Buyer Assistance Program
I finally got the hub to open a new account elsewhere.



Tho WaMu may not go under for quite some while. Since FDIC

doesn't have enuf employees to close all the branches.



A few bucks in the house, and a coupla gold coins isn't a bad

idea either. As well as a few extra cans of food, and a few bottles

of water.



Oh, and some packets of needles and bottles of booze for barter. . . .
 
[quote author="Allison C." date=1221913588][quote author="norcaljeff" date=1221904878][quote author="Allison C." date=1221865761][quote author="norcaljeff" date=1221826537]It's better than having a 4-5 month wait to get your cash out if something happened to WAMU. And I don't see what you could lose, you might actually be gaining some sleep now. Once the crisis averts you can always go back to risky investments.</blockquote>


I know... But I was just calculating the hundreds I will lose by switching banks per month. That's my gas money right there! Or if I saved up the hundreds, then I can go to South Coast Plaza and buy myself an authentic LV or Gucci bag! ;-)</blockquote>


Wow, just like a girl :) It's like talking to my ex. (sigh) On one hand you're complaining about losing money and the next you're complaining you can't spend it on a purse! Well after this ridiculous government bailout you can pretty much put your money back into whatever bank you want cuz uncle sammy is drunk again and has lost his mind. Buy some Bershire. That damn stock is the safest investment on the planet and it jumped 15% today, or $20k. It's absolutely insane. The market should dip again next week, this rally way way too fast and too high.</blockquote>


I was just kidding about the bags. I practically grew up with designer handbags. My aunt is a shopaholic/VIP at these stores. IMO, I don't see the need to spend that much on a purse. Me, I like my LeSportsac just fine.

I do agree with your last comment though. Maybe there'll be some surprise development this weekend??

(BRK-A? What is it? I checked it out, is it in US dollars? :bug: :ahhh: )</blockquote>


I probably shouldn't ask but is there a difference between a purse and a handbag? :)



BRK-A is the Berkshire Hathaway A class stock run by Warren Buffet. It rarely moves in percentages as it did this week.



In terms of stashing some cash, another place would be in treasury inflation protected securites, or TIPS. They pay treasury rates plus the rate of inflation, as reported by Uncle Sam. Good way to protect your worthless US Dollars from getting more worthless.
 
"I probably shouldn?t ask but is there a difference between a purse and a handbag?"



Purse... handbag... pocket-book... all terms used for purses, some more old-fashioned than others. Many will have different opinions but mine is that the term pocket book is archaic. Purse may imply something smaller especially to carry change i.e. a coin purse. Handbag is a good general term and sounds more stylish. Then of course there is a: clutch, bag, shoulder-bag, satchel, tote, etc.
 
[quote author="norcaljeff" date=1221989960][quote author="Allison C." date=1221913588][quote author="norcaljeff" date=1221904878][quote author="Allison C." date=1221865761][quote author="norcaljeff" date=1221826537]It's better than having a 4-5 month wait to get your cash out if something happened to WAMU. And I don't see what you could lose, you might actually be gaining some sleep now. Once the crisis averts you can always go back to risky investments.</blockquote>


I know... But I was just calculating the hundreds I will lose by switching banks per month. That's my gas money right there! Or if I saved up the hundreds, then I can go to South Coast Plaza and buy myself an authentic LV or Gucci bag! ;-)</blockquote>


Wow, just like a girl :) It's like talking to my ex. (sigh) On one hand you're complaining about losing money and the next you're complaining you can't spend it on a purse! Well after this ridiculous government bailout you can pretty much put your money back into whatever bank you want cuz uncle sammy is drunk again and has lost his mind. Buy some Bershire. That damn stock is the safest investment on the planet and it jumped 15% today, or $20k. It's absolutely insane. The market should dip again next week, this rally way way too fast and too high.</blockquote>


I was just kidding about the bags. I practically grew up with designer handbags. My aunt is a shopaholic/VIP at these stores. IMO, I don't see the need to spend that much on a purse. Me, I like my LeSportsac just fine.

I do agree with your last comment though. Maybe there'll be some surprise development this weekend??

(BRK-A? What is it? I checked it out, is it in US dollars? :bug: :ahhh: )</blockquote>


I probably shouldn't ask but is there a difference between a purse and a handbag? :)



BRK-A is the Berkshire Hathaway A class stock run by Warren Buffet. It rarely moves in percentages as it did this week.



In terms of stashing some cash, another place would be in treasury inflation protected securites, or TIPS. They pay treasury rates plus the rate of inflation, as reported by Uncle Sam. Good way to protect your worthless US Dollars from getting more worthless.</blockquote>


My best friend is from London. She always use the word purse when referring to her wallet, just like her using biscuits when referring to cookies. :) Handbags are probably sth bigger, to be carried on shoulder, but of course there are exceptions like the Hermes bag. I think in the US, it's interchangeable. ??



Anyways, I am just really PO right now after reading the OC Register report on WAMU lending practice. I know the lending practice was out of control, but the article on the Soni family, WAMU's appointed appraisers, and not screening its loan applicants, made me just wanna puke. :sick:



BTW, thanks for TIPS, if I have money left after purchasing my house, I will ask you for more info. ;-)
 
[quote author="blackvault" date=1221527869][quote author="IrvineRenter" date=1221526279][quote author="SoCal78" date=1221523228]Thanks for the info, Shooby. However, I am confused. If anything doesn't this seem like a sign of desperation / last-ditch efforts from Wamu? Correct me if I'm wrong (I know someone will!) ... but when Wamu offers a higher yield CD, their profit margin is going down as they continue to take hit after hit from bad loans. It reminds me the old tale of the boy sticking his finger in the hole in the dyke to hold back the water.</blockquote>


Yes, that is exactly what it is like. This is also one of the reasons mortgage interest rates will likely rise. The short-term borrowing costs of banks is rising. Banks borrow short and lend long. If short term costs rise, they must raise long-term rates, or they will lose even more money and go out of business (which WAMU probably will).</blockquote>


I agree. Don't be suprised if at some point in 2010 morgate interest rates are in double digits. Around 8-9% is a given in my opinion.



So if you are waiting to buy a home in a year or two when prices are most likely going to be lower, chances are your monthly payment will be close to what it could be if you bought now.



Keep in mind though....It is far better to buy a home for less and higher interest then for more and lower interest.



Excluding taxes/fees/PMI etc... 600K home @ 5.5% = 3406 payment. 400K @ 9.75% = 3436 payment.



The point being here is that your property taxes will be lower, bigger tax deductions and you can ALWAYS re-finance when rates drop. You can't change the price of your home once you buy it...Neither can you change your property tax.



So personally yeah, I would be a happy camper if prices of homes continue to drop and rates stay low. But if they do raise rates (which they will) it will only put more pressure on prices of homes. Something has to give.



BV</blockquote>


"The point being here is that your property taxes will be lower, bigger tax deductions and you can ALWAYS re-finance when rates drop. You can't change the price of your home once you buy it...Neither can you change your property tax."



wrong wrong wrong... all those people forclosing now were told too that they ALWAYS can refinance their 2% teaser rate... you can also change your property tax... if the value of your house drops, so will your property tax...
 
[quote author="flmgrip" date=1222041780][quote author="blackvault" date=1221527869][quote author="IrvineRenter" date=1221526279][quote author="SoCal78" date=1221523228]Thanks for the info, Shooby. However, I am confused. If anything doesn't this seem like a sign of desperation / last-ditch efforts from Wamu? Correct me if I'm wrong (I know someone will!) ... but when Wamu offers a higher yield CD, their profit margin is going down as they continue to take hit after hit from bad loans. It reminds me the old tale of the boy sticking his finger in the hole in the dyke to hold back the water.</blockquote>


Yes, that is exactly what it is like. This is also one of the reasons mortgage interest rates will likely rise. The short-term borrowing costs of banks is rising. Banks borrow short and lend long. If short term costs rise, they must raise long-term rates, or they will lose even more money and go out of business (which WAMU probably will).</blockquote>


I agree. Don't be suprised if at some point in 2010 morgate interest rates are in double digits. Around 8-9% is a given in my opinion.



So if you are waiting to buy a home in a year or two when prices are most likely going to be lower, chances are your monthly payment will be close to what it could be if you bought now.



Keep in mind though....It is far better to buy a home for less and higher interest then for more and lower interest.



Excluding taxes/fees/PMI etc... 600K home @ 5.5% = 3406 payment. 400K @ 9.75% = 3436 payment.



The point being here is that your property taxes will be lower, bigger tax deductions and you can ALWAYS re-finance when rates drop. You can't change the price of your home once you buy it...Neither can you change your property tax.



So personally yeah, I would be a happy camper if prices of homes continue to drop and rates stay low. But if they do raise rates (which they will) it will only put more pressure on prices of homes. Something has to give.



BV</blockquote>


"The point being here is that your property taxes will be lower, bigger tax deductions and you can ALWAYS re-finance when rates drop. You can't change the price of your home once you buy it...Neither can you change your property tax."



wrong wrong wrong... all those people forclosing now were told too that they ALWAYS can refinance their 2% teaser rate... you can also change your property tax... if the value of your house drops, so will your property tax...</blockquote>
Refinancing from an ARM to a 30-year fix is different than refinancing from a 30-year 11.35 fix to 30-year 5.75 fix.The later the payment goes down while the former the payment goes up. For example, I refinanced from a 30-year fix 8.75 to 30-year fix 5.75 and my payment went down nearly half. That is the difference!
 
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