It was kind of strange that Jeezy’s new album cover art debuted yesterday & coincided with the widespread news coverage of IndyMac’s collapse?
Am I the only one who literally cringed & caught a stomach pain when hearing the news? All I kept thinking was “FDIC insured” and “are we about to switch from recession to economic depression”?
Watching the dollar continuously slip over the past several years has been disheartening enough. Like most, I’ve tried to remain blissfully ignorant of our economy’s struggles. As I’ve crept into full-fledged adulthood, it’s enough to have to wrap my brain around mutual funds, retirement, annuities, money markets & finding enough to save money for later. On a daily basis, my bigger problem with the economy has been gas, not worrying about future investments. I’ve just continued to pray they would be safe & things would work themselves out. But yesterday’s news managed to put a face on what we all knew could possibly happen, watching the lines of people lined up around the IndyMac’s various branches.
In a note published Monday, Ladenburg Thalmann analyst Richard Bove wrote that the banking sector is “not anywhere near the danger” seen nearly two decades ago. He pointed out that the number of non-performing assets compared to the number of outstanding loans remain just a fraction of the levels during the early 1990s.
I think the more troubling part of it was that @ least ninety other banks (or 10% of the over 1500 banks that are FDIC insured) are on the FDIC’s “problem list.” Reading reports, Wamu, an e-favorite & I know several people with accounts there as well, is one of those. I feel pretty safe with my bricks & mortar bank. But I can tell you that little extra I’ve been sliding into my ING savings account each month, I might slack off on that a little. At least with my bricks & mortar, if it crashes & they stall me out on my loot, I’ll know which address to go & buck shots @ the tellers (I kid lol). What am I going to do to ING? Send them spam? TYPE IN ALL CAPS to signal my frustration?
I hope beyond hope that our next elected President, whoever he may be, & the government can right the wrong direction we’ve been headed. I feel pretty confident that our economy won’t fail any time soon. But prior to last Saturday, weren’t most of those people who had funds in IndyMac somewhat confident in their funds & financial institution?
I remember my Grandad, absurd as it may sound, would carry around over $20K cash on him @ times. Was he a hustler or did he need that much cash? Hustler, yes. Needed that much cash, no. What it was is that he came up during the actual Depression era & witnessed the economic fallout before banks were FDIC insured. He saw or heard of people losing their money to banks…thus he was his own bank, storing money in a safe in the closet, choosing to carry cash on him, or even going so far as to bury some of his cash. Like many others in his generation, he just did not trust banks.
I’m not @ the point of panic. But I am prepared to start going back to the shoebox under the mattress if things keep going @ this rate.
Jeezy’s The Recession in stores 8.19.
The other recession? We’ll update you soon.
Previously Posted — “â€¦Eat, Sleep, Shit & Talk Trap.”