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Indy Mac and Economic Downturn

February 22nd, 2008 at 01:43 am

Indy Mac has some issues so I am not sending my savings to them; they did not pay quarterly divends, for example. I know they are FDIC, but so is Countrywide and I am not saving with them either.

My cat's food was 59 cents a can last week and is now 69 cents a can.

I do not know why our gov't was so vocal last month denying the recession and downturn, but I see closed businesses in my town and the cost of pet food going up by 20%.

My mission this weekend is to find this cat food in bulk and stock up!

2 Responses to “Indy Mac and Economic Downturn”

  1. merch Says:

    Technically, we are not in a recession.. To be a recession, you need 2 quarters of negative real GDP.

    That hasn't happened. See: http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm or www.bea.gov/national/xls/gdplev.xls

    In fact, real GDP increased 4.9 percent in the third quarter of 2007 and GDP increased .6 in the forth (final numbers will be out 2/28).

    For your banking issue, I understand what you are saying. But I don't see the federal government or the banking community letting these banks fail. If these banks were in real trouble, someone like BOA would buy them up. But you have to do what you feel comfortable with. I believe you precieve a risk that really is not there. In any case, you need to feel comfortable with your banking decision. So people won't use internet banks that are FIDC insured.

    Remember, banks are heavily regulated at the state and federal level and have to keep certain ratio to insure on going operations. Citi recently had some issue where they had to raise so cash, and there wasn't a run on them.

  2. merch Says:

    Technically, we are not in a recession.. To be a recession, you need 2 quarters of negative real GDP.

    That hasn't happened. See: http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm or www.bea.gov/national/xls/gdplev.xls

    In fact, real GDP increased 4.9 percent in the third quarter of 2007 and GDP increased .6 in the forth (final numbers will be out 2/28).

    For your banking issue, I understand what you are saying. But I don't see the federal government or the banking community letting these banks fail. If these banks were in real trouble, someone like BOA would buy them up. But you have to do what you feel comfortable with. I believe you precieve a risk that really is not there. In any case, you need to feel comfortable with your banking decision. Some people won't use internet banks that are FIDC insured.

    Remember, banks are heavily regulated at the state and federal level and have to keep certain ratio to insure on going operations. Citi recently had some issue where they had to raise so cash, and there wasn't a run on them.

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