Time to get out

[armedandsafe]

It is well past time to get out of your (US) bank and into a credit union. This will be the final death-knell for safety and return on investment with the major banks.

Obama steps up campaign against Wall Street banks
By JIM KUHNHENN, Associated Press Writer Jim Kuhnhenn, Associated Press Writer
33 mins ago

WASHINGTON – President Barack Obama stepped up his campaign against Wall Street on Thursday with a far-reaching proposal for tougher regulation of the biggest banks.

"We have to get this done," Obama said at the White House. "If these folks want a fight, it's a fight I'm ready to have."

It was a stern, populist lecture from the president to Wall Street for what he perceives as its abandonment of Main Street. Obama said the government should have the power to limit the size and complexity of large financial institutions as well as their ability to make high-risk trades.

He said it wasn't appropriate that banks have been able to run these trading operations with the protections afforded to regular banking services.

"We have to enact commonsense reforms that will protect American taxpayers and the American economy from future crises," Obama said. "For, while the financial system is far stronger today than it was one year ago, it's still operating under the same rules that led to its near-collapse."

Joining Obama for the announcement were former Federal Reserve Chairman Paul Volcker, who heads the president's Economic Recovery Advisory Board, and William Donaldson, chairman of the Securities and Exchange Commission under President George W. Bush. Volcker and Donaldson have advocated stronger restrictions on banks.

Overhauling financial rules is the one issue on Obama's legislative agenda that appears still alive after Democrats' devastating loss Tuesday in the Massachusetts Senate race. The White House is renewing Obama's demand for an independent consumer financial protection agency as part of any overhaul. That's one of the major sticking points in the Senate; the House has passed its version already.

The new proposal from Obama intends to limit speculation by commercial banks and to keep financial institutions from growing so big that they pose a risk to the economic system.

"When you see more and more of the financial sector basically churning transactions and engaging in reckless speculation and obscuring underlying risks in a way that makes a few people obscene amounts of money but doesn't add value to the economy — and in fact puts the entire economy at enormous risk — then something's got to change," Obama said in an interview released Thursday by Time magazine.

Obama has branded bank executives as "fat cats" and proposed a fee on large banks to cover shortfalls in the government's $700 billion financial rescue fund.

Expanding on earlier measures, Obama endorsed Volcker's proposal to restrict proprietary trading by commercial banks. That would separate commercial banks from investment banks, a line blurred a decade ago by the repeal of the Depression-era Glass-Steagall Act.

This restriction would affect some of the biggest banks, including Bank of America Corp., Goldman Sachs and Citigroup Inc.

"The better answer is to modernize the regulatory framework and not take the industry and the economy back to the 1930s," said Scott Talbott, chief lobbyist for the Financial Services Roundtable, an industry group that represents large Wall Street institutions.

Goldman Sachs Group Inc. said Thursday it earned $4.79 billion in the fourth quarter as its trading business again outdistanced the rest of the industry. The company rewarded its employees with $16.2 billion in salaries and bonuses for 2009, 47 percent more than the previous year but still lower than many had expected.

There was a new urgency in the Senate to respond to the voter anger at Wall Street and bank bailouts that helped propel Republican Scott Brown to victory in Massachusetts for the seat long held by Democeatic Sen. Edward M. Kennedy, who died in August.

Brown's victory gave Republicans 41 votes, enough to mount successful filibusters and prevent Democratic legislation on health care or climate change from getting final votes.

But financial regulations could survive.

Administration officials believe that while Republicans may seek to block other aspects of the president's agenda, Senate GOP leader Mitch McConnell of Kentucky is considering making financial regulations an exception.

Pops

[ponycar17]

I'll agree with you on Credit Unions wholeheartedly. My wife has always worked for them and I have banked with them since I got the good sense to do so at 20 years old.

Now, you also have to realize that corporate credit unions (basically, the mother ship for small credit unions) also invested in more risky investments. Although they didn't require a bailout, these entities are likely also subject to government command and control mentality in the future. The problem isn't the banks. The problem is the government theology that regulated banks into creating artificial markets to stay afloat. THAT is the problem... More government regulation will not fix this.

With that said, this is nothing more than a diversion tactic by the Soros (oops, I mean Obama) administration. This action is meant to put wind in the sails of the current administration by attacking an entity that they are wagering a large percentage of Americans will enjoy attacking; Wall Street bankers... I don't think they get it. People are pissed about government intrusion into their lives, as proven by MA's referendum on Obamacare. People are also wising up to the fact that they will pay the price of taxation and limitations on the banking industry.

Know your enemy! :mad:

[hogger129]

I don't trust anybody to hold onto MY money. I'd just as soon keep it in my basement in garbage bags. But I will agree with you that Credit Unions are much better to get into than normal banks.

[rentalguy1]

I absolutely hate credit unions. I was treated very badly by the one that I belonged to years ago, and will never do that again. I only store money in a bank, and I'm not looking for a ROI. If you are expecting a ROI out of a bank, or a credit union, then you are gonna be sad at the end of the quarter...

[ponycar17]

I absolutely hate credit unions. I was treated very badly by the one that I belonged to years ago, and will never do that again....

There are bad credit unions just like there are bad fast food joints. I'd hardly call one experience worthy of hating the entire concept. :confused:

The worst I've been treated has been at commercial banks. There's no rationale that I can gather in paying a commercial bank a fee to be able to see a real live teller once a month, and that is a strategy that several commercial banks are employing these days... I've been a member of 3 credit unions, of which 2 I'm still a member. Never had a problem... :D

[rentalguy1]

I'll say it again...I've been with BoA for a decade. I have never paid a fee for any account, or any transaction. If I need a loan, it has never been a hassle with them. Maybe it's the amount of cash I have with them. I don't know. I do know that the credit union I was with for several years screwed me several times. I wanted a auto loan, had excellent credit, had down payment money, and the vehicle was worth way more than I was asking to borrow, yet I still needed a co-signer. I needed a mortgage, they asked for 20% down, plus closing costs. Everyone else qualified me for a higher amount and either 0% down or 3% down. Lastly, when we were away in TX, burying my step-father, I was unable to make my car payment on its due date (I usually went in the CU on the due date to handle this). The very next day, as we were leaving TX to come home, I hit the ATM for gas and food money only to find out that they had pulled out the payment I was 12 hours late on , plus the next month's, leaving me with no money in that account. I had plenty in savings, but I didn't have a ATM card for that account. This was before debit cards. I happened to work in the finance industry at the time as a district manager, and I knew what they had done was illegal. I let them know this over the phone, and quoted federal law to the manager. She immediately transferred the money back into my account, but once said she was sorry. I made the payment the following day as soon as we got back into town.

This was back in the day before there were very many credit unions, and you actually had to be employed at a certain place, or be a family member of a employee to be a member of the credit union, then you still had to pay a annual fee. I had quite a bit of money in there, and my parents had accounts in excess of the FDIC limit with them. We all closed our accounts that week and never looked back. I'll never deal with a small-town bunch of dim-wits again. I'll deal with bigger folks who have a idea of how financial matters and laws work.

[ampaterry]

Rentalguy, my experience is just the opposit -
But I do not use a credit union in my day-to-day, although remain a member of one.
My experience was with a big bank that FOREVER screwed my account up in IL because there was another customer with my same name, and some dimwits couldn't manage to look at the account number.
Moving down here to TN, we opened an account with a small local bank, and it was solid gold. After a few years experience with me, I wanted to buy a new car - I phoned them from the dealer, and they told me to just write them a check for anything I needed, and stop by later to fill out the paperwork.
Then they were bought out by a major bank chain.
Service went to POT, and the next time I needed a loan they gave me a hassle - though my credit is solid gold.
Many people here were upset with the loss of service, so several well healed folks in the county got together and started another small, local bank.
Back to excellent service!
They have now moved twice, as they continue to expand due to the influx of customers.

Hogger129, what is it like to keep your money in garbage bags?
I could put all mine in small bills in a one quart zip-lock.
LOL!!

[graehaven]

Extra cash, what's that?

I invest all of mine in guns, ammo, water, food, and silver.

[ampaterry]

Extra cash, what's that?

I invest all of mine in guns, ammo, water, food, and silver.

I did that.

I have a Spanish muzzle loading pistol, four lead balls, a gallon of water, a hot dog, and a dime minted in the 50's.

:D

[ponycar17]

I'll say it again...I've been with BoA for a decade. I have never paid a fee for any account, or any transaction. If I need a loan, it has never been a hassle with them. Maybe it's the amount of cash I have with them. I don't know. I do know that the credit union I was with for several years screwed me several times. I wanted a auto loan, had excellent credit, had down payment money, and the vehicle was worth way more than I was asking to borrow, yet I still needed a co-signer. I needed a mortgage, they asked for 20% down, plus closing costs. Everyone else qualified me for a higher amount and either 0% down or 3% down. Lastly, when we were away in TX, burying my step-father, I was unable to make my car payment on its due date (I usually went in the CU on the due date to handle this). The very next day, as we were leaving TX to come home, I hit the ATM for gas and food money only to find out that they had pulled out the payment I was 12 hours late on , plus the next month's, leaving me with no money in that account. I had plenty in savings, but I didn't have a ATM card for that account. This was before debit cards. I happened to work in the finance industry at the time as a district manager, and I knew what they had done was illegal. I let them know this over the phone, and quoted federal law to the manager. She immediately transferred the money back into my account, but once said she was sorry. I made the payment the following day as soon as we got back into town.

This was back in the day before there were very many credit unions, and you actually had to be employed at a certain place, or be a family member of a employee to be a member of the credit union, then you still had to pay a annual fee. I had quite a bit of money in there, and my parents had accounts in excess of the FDIC limit with them. We all closed our accounts that week and never looked back. I'll never deal with a small-town bunch of dim-wits again. I'll deal with bigger folks who have a idea of how financial matters and laws work.

I'm sorry that you had poor experience with that one credit union but I'll clarify a few things. First, credit unions are not secured by FDIC but by NCUA. Typically, their limits of insurance remain the same as the FDIC however.

I've never been a member of a credit union that charged a 'yearly fee' but they do require that you hold between $5 and $50 in a 'Shares Savings' account to maintain your membership. When you leave the credit union you get the money back. Although I've only been a member of 3 credit unions, between my wife and I we've been members of 5. All of them, even one based in Houston, TX didn't require a 'yearly fee'. I believe you misstated that, although that's easy to do...

I haven't had issues securing loans with credit unions. Typically, they have better rates but are far more conservative in their lending practices. For instance, our home loan is amortized over 30 years but due for refinance in 20 years. It doesn't matter since it will be paid in full before 20 years. The reason is that the credit union doesn't want to take on 30 years of liability. They often require larger down payments as well. Still, they're being careful. That is what gets you lower rates on loans and much higher rates of return on investment products. Also, they're often willing to take on LPMI vs. BPMI when securing a mortgage with less than 20% equity. LPMI is lender paid mortgage insurance which essentially eliminates your PMI with only a slightly higher interest rate. PMI is not tax deductible but interest is... It's a wash. BPMI is what most banks use and they charge you $100+ per month, non tax-deductible and it's going to nothing...

Sorry, I might be a little biased by my situation but the commercial banks are horrible. My Grandpa recently moved a CD from a big commercial bank to a small local bank with a 1% higher rate of return. He's catching on too... :D

[308 at my gate]

I am still playing the stock market thank you.

[obxned]

Locky for me, the housing crash and the current economy have solved my problem of where to put my money - it's in a piggy bank, a very small one.

[Marlin T]

Although they didn't require a bailout, these entities are likely also subject to government command and control mentality in the future. The problem isn't the banks. The problem is the government theology that regulated banks into creating artificial markets to stay afloat. THAT is the problem... More government regulation will not fix this.

:mad:

EXACTLY

The credit unions may be the way to go for today, but that will change if the that POS, I mean POTUS has his way.

I say get oBOMBa out of the US, then we won't have to worry about which banking system you choose.

I have had a credit union account ever since I was in the navy many years ago and have NEVER had a problem, ever. Unless of course you count the time that I wanted to withdraw enough money to buy a new truck on a friday evening; and they gave me LOTS of bills including stacks of ones :eek::D But I did get the cash :cool:

[ampaterry]

I am still playing the stock market thank you.

I am heavily in several mutual funds as well -

And BO, LEAVE THE BANKS THE HECK ALONE!!!
He just TALKED about cracking down on them, and we have had the worst three day drop in the market since he has been in office.
This idiot can KILL the fledgling recovery we have been seeing lately if he does not grow a brain REAL quick.

Good grief, man, take Michelle into the Oval office and spend the next three years pretending you are Bill with Monica.

[graehaven]

401ks, pension plans and IRAs will be seized here pretty soon, in the interest of "saving the economy." You will then be "guaranteed" a level check amount for your retirement. But you will lose your money.

I'm not an investment advisor, and this is not advice, But, IF I had any of those plans right now, I'd take the hit, and get my money out. They will take it and you will have no right to it.

Don't think it's not all being planned behind the curtain right now. Don't say you weren't warned.

If I could legally do so, I'd cash out the little I have in my 403b at work, but I can't unless I lose my job there. Which, may yet happen.

[rentalguy1]

I'm sorry that you had poor experience with that one credit union but I'll clarify a few things. First, credit unions are not secured by FDIC but by NCUA. Typically, their limits of insurance remain the same as the FDIC however.

I've never been a member of a credit union that charged a 'yearly fee' but they do require that you hold between $5 and $50 in a 'Shares Savings' account to maintain your membership. When you leave the credit union you get the money back. Although I've only been a member of 3 credit unions, between my wife and I we've been members of 5. All of them, even one based in Houston, TX didn't require a 'yearly fee'. I believe you misstated that, although that's easy to do...

I haven't had issues securing loans with credit unions. Typically, they have better rates but are far more conservative in their lending practices. For instance, our home loan is amortized over 30 years but due for refinance in 20 years. It doesn't matter since it will be paid in full before 20 years. The reason is that the credit union doesn't want to take on 30 years of liability. They often require larger down payments as well. Still, they're being careful. That is what gets you lower rates on loans and much higher rates of return on investment products. Also, they're often willing to take on LPMI vs. BPMI when securing a mortgage with less than 20% equity. LPMI is lender paid mortgage insurance which essentially eliminates your PMI with only a slightly higher interest rate. PMI is not tax deductible but interest is... It's a wash. BPMI is what most banks use and they charge you $100+ per month, non tax-deductible and it's going to nothing...

Sorry, I might be a little biased by my situation but the commercial banks are horrible. My Grandpa recently moved a CD from a big commercial bank to a small local bank with a 1% higher rate of return. He's catching on too... :D

I knew it was not the FDIC, but I couldn't remember the acronym. The limit was 100K at that point, and they had more than that in there, and now they don't have a cent with them. The credit union itself was part of a huge corporation, and you had to either work there, or be a family member of a employee. They charged everyone $20/year (or some small amount...it's been a while), plus you had to keep $50 in a savings account. Their interest rates were better, but that does you no good if you can't get a loan. They took other factors into consideration, like the applicant's age, that was unprofessional. They refused my loan, even though I had perfect credit and the loan value was lower than the car value, because I was 23, and not 43. It doesn't matter any more now, because I won't deal with a credit union or a small town bank. All I need is a place to store money while it waits to be paid out. I don't need loans any more since I buy with cash.

[graehaven]

I did that.

I have a Spanish muzzle loading pistol, four lead balls, a gallon of water, a hot dog, and a dime minted in the 50's.

:D

LOL, right. I KNOW you have MORE than FOUR! :eek::D

[ponycar17]

I knew it was not the FDIC, but I couldn't remember the acronym. The limit was 100K at that point, and they had more than that in there, and now they don't have a cent with them. The credit union itself was part of a huge corporation, and you had to either work there, or be a family member of a employee. They charged everyone $20/year (or some small amount...it's been a while), plus you had to keep $50 in a savings account. Their interest rates were better, but that does you no good if you can't get a loan. They took other factors into consideration, like the applicant's age, that was unprofessional. They refused my loan, even though I had perfect credit and the loan value was lower than the car value, because I was 23, and not 43. It doesn't matter any more now, because I won't deal with a credit union or a small town bank. All I need is a place to store money while it waits to be paid out. I don't need loans any more since I buy with cash.

Oh, I understand. I'm just giving the other side of the story. I've had great success with them, and kind of have a vested interest in their success as well. :D

[308 at my gate]

401ks, pension plans and IRAs will be seized here pretty soon, in the interest of "saving the economy." You will then be "guaranteed" a level check amount for your retirement. But you will lose your money.

I'm not an investment advisor, and this is not advice, But, IF I had any of those plans right now, I'd take the hit, and get my money out. They will take it and you will have no right to it.

Don't think it's not all being planned behind the curtain right now. Don't say you weren't warned.

If I could legally do so, I'd cash out the little I have in my 403b at work, but I can't unless I lose my job there. Which, may yet happen.



So far I have had success with the market and unless someone can produce some kind of proof that someone is going to sieze my 401k that is what I am sticking with. Thanks for the warning.

[Suwannee Tim]

I don't trust anybody to hold onto MY money. I'd just as soon keep it in my basement in garbage bags. But I will agree with you that Credit Unions are much better to get into than normal banks.

Where did you say you live hogger? And what are your working hours?:D

[noslolo]

I work in MD and my wife works in PA. I have had an acount in the MD state employee CU for the last 15 years and it sucks....Bad!!!!!!! My wife and I have had an acount in PA in the MERHO CU, they are very small and head and shoulders better than my long standing MD CU. We have been with them for only 5 years and they lend money when we need it and the rate is fantastic. I need to drop SECU, but I have just been to lazy. Poor excuse, I know.

[graehaven]

So far I have had success with the market and unless someone can produce some kind of proof that someone is going to sieze my 401k that is what I am sticking with. Thanks for the warning.

LOL, um, ok. Well then. They been tossing around the idea for many years. Here:

http://www.georgewashington2.blogspot.com/2009/05/will-obama-seize-americans-401k-and-ira.html

and here:

http://boortz.com/more/newsletter/011410_retirement.html

[REISINGMOD50]

There is no doubt that the Black Blunder is going to continue a relentless attack upon wealth and success. Ever initiative he has cooked up is aimed at reducing the productive people to the level of his base: welfare losers, anti Americans, social parasites, anti business and the wealth envy crowd. Until he is removed from office, nothing of value will be safe in this country. His next attack will be to confiscate or heavily tax the 401k accounts. Unless the congress is changed in 2010, this is what we can expect to see next. Vote all Dems and RHINOs out.

[308 at my gate]

LOL, um, ok. Well then. They been tossing around the idea for many years. Here:

http://www.georgewashington2.blogspot.com/2009/05/will-obama-seize-americans-401k-and-ira.html

and here:

http://boortz.com/more/newsletter/011410_retirement.html

I like the way the blog starts out by saying there are rumors floating around. There is another rumor going around and that is the stock market will end higher in 2010.

[rentalguy1]

I like the way the blog starts out by saying there are rumors floating around. There is another rumor going around and that is the stock market will end higher in 2010.


I wouldn't look for that to happen...

I just got out, because I am expecting a "REAL" crash within the next 45 days. I hope I'm wrong, and if I am I will put my money back in the market after the summer.

[wyoredot]

wow.... do tell.....

[graehaven]

I like the way the blog starts out by saying there are rumors floating around. There is another rumor going around and that is the stock market will end higher in 2010.

The information was offered freely in response to your query.

There are rumors (more than that really) that the government is stockpiling massive amounts of freeze dried storable food and water, as well as seeds. And they're not talking about it. I wonder why.

There are rumors, (MUCH more than that) that the government has set up hundreds of "camps" nationwide to house people. And they're not talking about it. I wonder why.

There are rumors (more than that really) that the census workers will be "painting" your front door with a GPS device and recording that data for some reason. I wonder why the government would want to know EXACTLY where your front door is? I mean, GPS is just used for travel and......and......er......the military's smart munitions programs. Hmmmmm. I wonder why they'd do that.


So anyway. You may choose to not believe rumors. If you're doing well in the market - more power to you. I think when "rumors" start showing up in news stories and reputable blogs, one should take notice. As I said, the info is offered freely, no advice on what to do whatsoever.

[ponycar17]

I wouldn't look for that to happen...

I just got out, because I am expecting a "REAL" crash within the next 45 days. I hope I'm wrong, and if I am I will put my money back in the market after the summer.

You could be right. :eek: The Senate has been leaning against reappointing Bernanke to Head of the Board of Governors of the Federal Reserve. Advisers started saying that if Bernanke doesn't take this position back it could lead to a 'double-dip' recession. Some would say that's because Bernanke is knowledgeable of the situation. I consider that statement a threat. After all, the Federal Reserve literally controls our prosperity and if they want us to fail, they'll make it happen in short order. :mad: There are few people who understand the relationships of the Money Supply, Inflation and Federal Reserve Discount Rates... It's funny how just this week, Bernanke's appointment is looking more and more likely by the Senate... Interesting... :mad:

http://www.foxnews.com/politics/2010/01/25/uncertainty-bernanke-vote-raises-economic-fears/?test=latestnews

Don't underestimate the threats of truly evil people who operate outside our 'Government of The People'... :rolleyes: