Ok, so I hear Washington Mutual is heading downhill..
07-28-2008, 02:02 PM
#1
Ok, so I hear Washington Mutual is heading downhill..
I've read a couple of articles, and some threads on the forum that WaMu is headed down the same streets as IndyMac... I don't want to go through the headaches of going through paperwork and claiming my money from the feds a year later because it was insured by the FDIC... so I'd rather take action now then later...
what banks do you guys prefer? Some people I talk to say BofA, others have said Wells Fargo, and even others have said Credit Unions... Any opinions or referrals?
what banks do you guys prefer? Some people I talk to say BofA, others have said Wells Fargo, and even others have said Credit Unions... Any opinions or referrals?
07-28-2008, 02:30 PM
#5
Originally Posted by dspiel
bofa is the biggest i may just go with them for the fact they have so many atms.
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07-28-2008, 02:47 PM
#8
Originally Posted by dspiel
they have a special now that pretty much is equivlent to my current wamu.com free checking, no monthly fee which is all i care about.
Anyone currently a BofA checking acct holder?
07-28-2008, 03:01 PM
#11
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IndyMac and FannieMae were institutions that were owned by the government to help stimulate the real estate industry. With the way the economy is, it isn't a surprise that they collapsed. I don't think WaMu is government owned so the same theory wouldn't apply, not in my opinion anyways. International bankers FTL.
07-28-2008, 03:05 PM
#12
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Wells Fargo FTW, largest bank on the west coast. Twice as many ATM's and locations compared to BofA. Although Citi is safe too, only reason their still in business is because they are so big internationally. They got too involved in subprime and took almost a 7 Billion dollar loss this quarter. Wells Fargo MADE 1.8 billion last quarter. Choice is simple.
07-28-2008, 03:53 PM
#14
Originally Posted by Andy@Performance
IndyMac and FannieMae were institutions that were owned by the government to help stimulate the real estate industry. With the way the economy is, it isn't a surprise that they collapsed. I don't think WaMu is government owned so the same theory wouldn't apply, not in my opinion anyways. International bankers FTL.
Fannie Mae was a goverment owned business, but not since 1968 when it became a private company, same goes for Freddy Mac, which is what I think you meant. (http://en.wikipedia.org/wiki/Fannie_mae)
As far as WaMu failing, I have no idea - I keep my money @ Wells Fargo.
-George
07-28-2008, 04:53 PM
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You guys should check out ING Direct. It pays more interest then any local bank, offers a checking account that also offers interest and has no minimums. I keep a local bank just so I can have some paper checks and extra ATM access but most of my money is kept at ING.
07-28-2008, 06:37 PM
#18
Well there is many ways to argue the point but I'll give you some examples to help understand. I'm too tired to write out a complex answer but this should suffice.
Lets say you have $100,000.00 in a high yield savings account at (5%) interest.
Over a 10year time span, you will have made over $50,000 in interest, which seems pretty good right? Wrong.
The average inflation rate from 1989-2004 was 4-5% and since 2004 it has gone down hill. So all that interest you are making is pretty much void and lets not forget that you are also paying taxes on any interest made that is valued over $100.
If you want to invest your money, it is best to invest it in things that provide a residual source of income. Buying a house, renting it out, and then selling it is way more profitable over 10 years. A the value of house doubles every 7-10 years.
Lets say you have $100,000.00 in a high yield savings account at (5%) interest.
Over a 10year time span, you will have made over $50,000 in interest, which seems pretty good right? Wrong.
The average inflation rate from 1989-2004 was 4-5% and since 2004 it has gone down hill. So all that interest you are making is pretty much void and lets not forget that you are also paying taxes on any interest made that is valued over $100.
If you want to invest your money, it is best to invest it in things that provide a residual source of income. Buying a house, renting it out, and then selling it is way more profitable over 10 years. A the value of house doubles every 7-10 years.
07-28-2008, 06:49 PM
#19
there is a lot more involved but you have way more opportunities investing in something like a house then just dumping ur money into a savings account. You can take out loans against your house to invest in other things or remodel your house etc...
07-28-2008, 08:22 PM
#20
Well, a friend of mine, who used to work in the banking industry, said I shouldn't really worry about the "big" banks of the US: BofA,Wells,Chase,Wach,Citi, etc.. and our FAV... WaMu 
...because since these companies are so diversified into our economy that the gov't would not let them go under... because of it's potential rippling effect... I respect her insight as she called the demise of countrywide and it's affect on the market... and she called it out when it was on the rise in the market and housing was booming...
But yeah, she said ultimately, its on me and whether I feel safe with my bank, and honestly I don't. I've had past problems with internal theft (yes, someone inside the bank stole my money previously... thousands of dollars, and I'm not the only one either..)... so yeah, I'll be rolling by Wells tomorrow after work...
...because since these companies are so diversified into our economy that the gov't would not let them go under... because of it's potential rippling effect... I respect her insight as she called the demise of countrywide and it's affect on the market... and she called it out when it was on the rise in the market and housing was booming... But yeah, she said ultimately, its on me and whether I feel safe with my bank, and honestly I don't. I've had past problems with internal theft (yes, someone inside the bank stole my money previously... thousands of dollars, and I'm not the only one either..)... so yeah, I'll be rolling by Wells tomorrow after work...