this is what happens when you chase a yield

[ahnuld]

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it sucks but the paper is being melodramatic. For a 77 year old, 200k is enough to last a long time. 10k a year in interest and 10k a year from the principle should see him living comfortably until his death. They talk of him committing suicide or whatever, please.

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20k/yr to live off of? Property taxes, health insurance, utility bills will exceed that much per yr. Maybe he has a pension plan, if not how is this guy gonna eat?


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Maybe uits different because I live in Canada but here you can rent your own place for 650 a month, then you dont pay property tax, and utlities are what, 200$ a month? We do get medicare so no health bills, tack on an extra 100$ a month for drugs not covered by medicare, but add 500$ a month from old age pension and you are plenty fine. Of course, our taxes are close to 50% because of all this, but then expenses are lower.

[maxtower]

What I want to know is why the bank accepts deposits above 100k. At that point, they ought to tell you, "Hey, we'll take your money, but its not insured and you should probably deposit elsewhere or put another name on the account, etc."

[Thremp]

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What I want to know is why the bank accepts deposits above 100k. At that point, they ought to tell you, "Hey, we'll take your money, but its not insured and you should probably deposit elsewhere or put another name on the account, etc."

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WTF?

[Nomad84]

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What I want to know is why the bank accepts deposits above 100k. At that point, they ought to tell you, "Hey, we'll take your money, but its not insured and you should probably deposit elsewhere or put another name on the account, etc."

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If you were a bank, would you seriously say "We don't want any more of your business, please go to our competitor"? And they do tell you it isn't insured. As others have mentioned, FDIC insurance limits are posted everywhere and are listed in the documents you sign when you open the account. If you don't know it isn't insured above $100k, it's only because you didn't read.

[maxtower]

They could suggest adding another person to the account to avoid this problem instead of lying to him and suggesting his money is safe when it isn't.

[emon87]

wow you're clueless. they aren't lying to him at all. Have you ever been to a bank? In every bank ever the signs are all over the place. I knew that FDIC insurance ended at $100k when I was like 6. People have a responsibility to look out for themselves.

[kyleb]

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People have a responsibility to look out for themselves.

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why do you hate america

[emon87]

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People have a responsibility to look out for themselves.

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why do you hate america

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lol [img]/images/graemlins/crazy.gif[/img]

[pig4bill]

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And this relates to current market conditions because of these hedge fund managers chasing high yields on subprime paper. Unfortunately, that paper was marked to model and not marked to market. That is not to say the market cant go up from here. European central bankers said that they are willing to inject an unlimited amount of money into the system to keep things afload. I have no reason to believe the FED wont do the same thing.

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Please post a link to the guys claiming there will be a trillion dollars in sub prime losses. I'm trying to read everything I can on that market and I'd like to see where their loss rate estimates came from.

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I wouldn't be surprised if that's what it turns out to be. I've seen random snippets that the pseudo-government companies(FNMA, etc) hold a trillion in subprime paper. Then there's everyone else that holds it - banks, pension plans, hedge funds, et al. A couple weeks ago that paper was being bought for between 30 and 50 cents on the dollar.