As some of you who have money invested in the stock market right now already know, the market has collapsed.
Lat week, the government took extraordinary measures to help bail out a private financial company called AIG by sinking $85 billion of our money into the company. The feds are now running the former insurance giant.
On Sept. 7, the government seized mortgage giants Fannie Mae and Freddie Mac to keep them from going under. And you already know about the failed banks that were seized by the government a couple of months ago.
These companies are being taken over by the federal government – which is sinking hundreds of millions of taxpayer dollars into them – because the government says the failure of companies like AIG would further disrupt the markets and send other firms into a “financial death spiral.”
I heard that Wachovia bank, where my money is invested, is a major player in this mess. So I called my investment broker at Wachovia today to ask him to explain in layman’s terms what’s going on.
He said Wachovia is in talks to merge with Morgan Stanley – with the smaller bank (Wachovia) planning to buy the larger investment bank. My Wachovia broker is confident that the deal will be done by this weekend, if not by tomorrow.
He said this is the best time for me (a small investor) to invest more of my money because he thinks the market will rally by next week.
Morgan Stanley’s shares plunged as much as 44% yesterday which makes me wonder how this merger benefits Wachovia?
No doubt, Wall Street is in a major crisis right now. This whole mess can be traced back to the Enron debacle involving Bush and his good ol’ boys. Financial decisions made by Bush and his cronies in private back rooms in the White house are now coming home to roost.
This morning, president Bush was forced to cancel a trip so he could address the crisis.
Just a few minutes ago, the feds announced a 180-billion-dollar cash line to fight the racing fires of global financial crisis – with foreign banks stepping in to help.
People, keep watching the news – even if you don’t have any money invested in the markets. The economy is in a steep nose dive and it’s always the little people like us who suffer the most. 
Sandra said:
People, keep watching the news – even if you don’t have any money invested in the markets. Is Your Money Safe?
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I don’t have any……really!
Us lil ppl always end up “makin’ it” somehow. Now THAT I can attest to.
Thanks for keeping us informed. However, I am a little person whom has been affected by this. I purchased a home last year and it’s been tough with the cost of living going up. Anyway, I have no extra money to invest or keep in banks.
Im soo lost on whats going on can someone break it down for me? I know nothing about stocks or the housing market. Im soo into health and science that I overlook the things that really matter now. What is so bad about the stock market crashing and what did it mean when they closed and lost 500 points?- i think thats what happened…… Before you critize me my parents raised me to be into science, science, science since there werent that many women in the field.
#2 said:
it’s been tough with the cost of living going up. Anyway, I have no extra money to invest or keep in banks.
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My point exactly. I have the things I NEED. When my electric was off for 2 days (due to Hurricane Ike’s fury – somebody said all Tina had to do was eat the damn cake) I didn’t fear. There are ppl who still don’t have electricity. My friend is still w/o power. My niece who has a newborn has NO power. I am grateful. I have food to eat and a roof over my head. A car to drive and a JOB to come to, that IS secure (granted I can quit being a crackhead and stay off THIS site – blk folks can’t do wrong right). But anyway all’z I’m saying is……I can’t complain.
This does effect us. Ppl have money tied in 401(k) that they can’t touch unless they are paying for school, meanwhile you can’t cash it out and it is dwindling by the day due to the stock market crashing. My hubby has a nice size investment in his 401(k) and it is shrinking. I have an IRA that is ok, so far.
It’s bad enough that Wall Street went down 500.You know we off to something bad.Hopefully my bank (USAA) don’t go under,but I took ALL my money out because nobody’s money is safe.I just can’t keep thinking we gonna be slaving for other countries.It may not be a good idea to have money from foreign companies pour in.I’m a International Business major and this is right up my alley.Everybody who voted for Bush knew his judgement wasn’t any good, but this is what we get.This is why I WON’T put a Republican back in the White House.
@ sandra: i hope u didn’t listen to him…
He said this is the best time for me (a small investor) to invest more of my money because he thinks the market will rally by next week.
All i have to say is……………….
If you cant afford to buy a house with your shitty ass credit than dont try to buy one, perhaps if the whole free spending idea would go away and these fixed morttgage rates would fall off and die than we wouldnt have these issues, the economy is better than it was 3 years ago believe it or not but this is ridiculous that or money is being invested in investment banks whos CEOS are paid Millions more than many of us will ever make. and its the consumers faults for this mess but also the banks who lent themselves too far to debtors who were not qualified to have the loans they wanted in the first place. This is not the republicans fault, this is not GWBs fault this is the LITTLE peoples fault and the big banks who were not practicing good lending practices
^ Fixed mortgages are much more better than ARMs, IMO, even though the interest is high(but payments are predictable and easier to budget) depending how long your loan last (30 years is the best).I see why people get ARMs because of the value, but in the long run it won’t do any good so I see why ARMs might be ok if living one is living on property for a amount of time so that it won’t go up.ARMs are too complicated though.
I don’t think banks would take a risk to give someone a mortgage with bad credit lol, at least not the bank I finance with.If you don’t have at least 20,000 to put down on a home, don’t get it!But banks are sooo bad.So so so bad.
My money is safe cuz i ain’t got no $$$$$…….lol
on the real…..this is serious. I heard my bank…wamu is pumpin $$ in the market, but idk….dis is serious…..no way to suggar coat it.
@ Charles Says:
All i have to say is……………….
If you cant afford to buy a house with your ****ty ass credit than dont try to buy one, perhaps if the whole free spending idea would go away and these fixed morttgage rates would fall off and die than we wouldnt have these issues, the economy is better than it was 3 years ago believe it or not but this is ridiculous that or money is being invested in investment banks whos CEOS are paid Millions more than many of us will ever make. and its the consumers faults for this mess but also the banks who lent themselves too far to debtors who were not qualified to have the loans they wanted in the first place. This is not the republicans fault, this is not GWBs fault this is the LITTLE peoples fault and the big banks who were not practicing good lending practices
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This is not necessarily the mistake of the homeowners but the Preditory Lenders. They knew these folks had only one thing on their mind, to be homeowners. The lenders gave bigger loans for ppl to buy more expensive houses than they qualified for.
I’m broke so my money is doing just fine.
Charles is tripping. How is it the consumer’s fault? The Republican deregulation of banks allowed this entire scenario to play out… No dereg, no stock market crashing. Maybe you were being sarcastic?
The lil people don’t think they are getting messed up because of this, but even if you don’t have money invested or money in banks it still touches you with the more stringent credit practices, home equity and all that… Only cats this doesn’t touch are street cats.
The economy is in a hot azz mess now. Personally I think the people that have been struggling don’t have anything to worry about cause we already know first hand how to live from pay check to paycheck and make a way out of no way. Now to the people that are use to spending a lot of money with lavish homes lose their Wall Street jobs and their 401K plan is not looking all that good they need to worry cause it is hard for people who have always had money to adjust to a lesser amount of income coming in. I think that these last 8 years with Bush have been hell. Sept 11 hit us and the Katrina we just never reall got back on our feet after these two major events happened in the US. Ohh don’t get me started on the WAR!!!
dj_dceezy Says:
Charles is tripping. How is it the consumer’s fault? The Republican deregulation of banks allowed this entire scenario to play out… No dereg, no stock market crashing. Maybe you were being sarcastic?
The lil people don’t think they are getting messed up because of this, but even if you don’t have money invested or money in banks it still touches you with the more stringent credit practices, home equity and all that… Only cats this doesn’t touch are street cats.
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Thats a Man who actually reads and understands exactly how this fugged up economy it started with that Trickle Down Bullsh!t and it hasn’t let up since … we caught a brief break when Bill was in Office .. budget balanced .. stocke market fine.
As my momma would say .. Charles is talkin about the side of his neck.
Hey guys, i just mentioned this on another post but THIS election is so important. As if people’s financial situation aint f$#ked up enough already. Republicans in Michigan are pushing to use foreclosure lists to keep people from voting.
http://www.michiganmessenger.com/4463/obama-campaign-files-suit-over-foreclosure-lists
^ Whooooooooa, they can do that??What kind of democracy we living in????Voting is a right.
@ Mississippi16 Says:
Hey guys, i just mentioned this on another post but THIS election is so important. As if people’s financial situation aint f$#ked up enough already. Republicans in Michigan are pushing to use foreclosure lists to keep people from voting.
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I did not click on the link but is their reasoning if you don’t have your home you are voting in the wrong precient. Somebody better hurry up and fix this before Nov. Many ppl have lost their homes and should still be able to vote where they use to live. White ppl lose their homes also but I can probably guarantee they too want to vote for Obama.
Who ever thinks Wamu is doing good you need to do a google search. They are doing horrible and are on the brink of selling. This to me effects everyone. The market crash seems like a good reason for companies to raise prices and use that as an excuse. I saw a dozen of eggs for 2.99. 2.99! That’s insane. Even if we don’t have any money with the cost of living going up, up, up we won’t be able to afford to put cheese on a waffle.
dj_dceezy Says:
The lil people don’t think they are getting messed up because of this, but even if you don’t have money invested or money in banks it still touches you with the more stringent credit practices, home equity and all that… Only cats this doesn’t touch are street cats.
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I’m broke so I don’t have a house nor the money to even think about getting one. Jon B f*cked up my credit and my money (Sandra decided not to run that story) so it will take me years before I can even apply for a credit card. Like I said this doesn’t effect me and I am not a street person. Just broke.
@Anna – White ppl lose their homes also but I can probably guarantee they too want to vote for Obama.
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Snippet of the article explains… “In Michigan, over 60% of sub-prime loans were made to African-Americans. And in general, people who’ve been hit hard by the economy are less likely to vote for Republicans”
@ 21Bird Says:
dj_dceezy Says:
The lil people don’t think they are getting messed up because of this, but even if you don’t have money invested or money in banks it still touches you with the more stringent credit practices, home equity and all that… Only cats this doesn’t touch are street cats.
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I’m broke so I don’t have a house nor the money to even think about getting one. Jon B f*cked up my credit and my money (Sandra decided not to run that story) so it will take me years before I can even apply for a credit card. Like I said this doesn’t effect me and I am not a
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This does affect us all or at least it will. Does not matter if you don’t own a house or have a credit card. Ppl who are renting houses are being evicted because the landlord is in foreclosure. When property taxes go up you can best believe your landlord will increase your rent. If the government continues to bail out our economy the money is going to run out and we the consumers are going to be taxed like hell to buy a candy bar.
@Bird, Jon B messed up your credit???Whoa, how he do that?
Anna
Ok I’m going to say this one more gan and leave it at that. I’m broke so this does not effect me. I don’t rent a house, I live in an apartment. My baby daddy rents a house with a rent payment of $1300 a month. No doubt his rent is higher than the mortgage payment so there is no reason for that owner to lose their house. Just because I’m broke and unaffected by the mortgage crisis doesn’t mean I’m not going to vote. I know this is an important issue for many Americans. IT JUST DOESN’T EFFECT ME PERSONALLY.
Sharonda Says:
@Bird, Jon B messed up your credit???Whoa, how he do that?
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I booked him for a gig and he cancelled on me at the last minute. I lost all my money. 25k to be exact, half of which came from loans back when I had stellar credit. I’m so broke I can’t even sue his white a$$. I was really praying that Sandra would run the story so that he would be shamed into at least paying me back for the plane tickets he jacked from me. I desperately want to kick his ass. He stole from my children.
i remember you mentioning that
he took more than than his 50% deposit? or is your loss also counting venue, promo, etc losses?
He gave back the 60% deposit. The venue alone cost me 7k and they would not give the money back. Not to mention the equipment I had to rent of his a$$ among many other expenses including giving people who bought tickets their money back when they were not interested in the replacement act, Silk. I had no time to market the new event.
Jon B. ought to be shamed, that’s not cool.
@ Charles Says:
All i have to say is……………….
If you cant afford to buy a house with your ****ty ass credit than dont try to buy one, perhaps if the whole free spending idea would go away and these fixed morttgage rates would fall off and die than we wouldnt have these issues, the economy is better than it was 3 years ago believe it or not but this is ridiculous that or money is being invested in investment banks whos CEOS are paid Millions more than many of us will ever make. and its the consumers faults for this mess but also the banks who lent themselves too far to debtors who were not qualified to have the loans they wanted in the first place. This is not the republicans fault, this is not GWBs fault this is the LITTLE peoples fault and the big banks who were not practicing good lending practices
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FYI, I do not have BAD credit and I received a very nice fixed interest rate on my home. Unlike you who obviously is living in a box we are in a damn recession. I am paying my bills, taking care of my kids and not at risk of loosing my home. However, I am not going to say that it is not scary nor tough. PLEASE DON’T JUDGE ME CUZ YOU KNOW NOTHING ABOUT ME!!!!!
Sidebar, I took a pic of a gallon of milk on sale for $7.99 !!!!! (ABOUT 3 MONTHS AGO) That is fucking nuts and signals nothing more than a crappy economy.
@ missmiami,
Who said i was judging you, clearly you have your **** together, but im talking about those who go out and try to keep with the Jones’ knowing damn well they cannot afford it, this is causing our housing market to collapse which actually trickles into other aspects FYI!
And i wouldnt call the lending predatory, but thanks to GWB he created a economy that catered to the buy more than what you can afford on credit than the bills start kicking in and well you are massively in debt and you cant pay it back, then the banks who loaned you the money are in debt and then it goes higher.
Bird, I read that story, Sandra did run it
@ bird: that’s messed up…i remember reading your story on hear…
@Charles…. I addressed this in a different thread. MissMiami thought you were talking about her because she stated “I purchased a home last year and it’s been tough with the cost of living going up. Anyway, I have no extra money to invest or keep in banks”. In her post.
Then when you made a comment saying “If you cant afford to buy a house with your ****ty ass credit” she thought it was referring to her. Misunderstanding and word usages (unless you were referring to her post). Instead of using “You” singler to make the statement more general “People” should have been used.
Actually now would be a good time to invest because stock prices are low it just depends on how much one person can afford to loose when investing in a shakey economy. Lending companies tried to take advantage of the wanna be homeowners who had no experience with ownership. The did not understand subprime rates, etc. But, in the end everyone is loosing. Hey yte people you put him in office and didn’t think it would affect you but, in the long run he cared nothing about anything but his own name. We are all getting screwed.
Charles Says:
And i wouldnt call the lending predatory, but thanks to GWB he created a economy that catered to the buy more than what you can afford on credit than the bills start kicking in and well you are massively in debt and you cant pay it back, then the banks who loaned you the money are in debt and then it goes higher.
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All I know is that I was doing fine with all my credit cards and had excellent credit until that dreadful day came when my supervisor came told me and the other staff that our office was closing down for good. Is it my fault that the rug was pulled right from under my feet and now I have to focus on providing shelter and food for myself and my child as oposed to paying those credit cards?? I’m sorry, but with limited income, you gotta do what you gotta do. I’m just in survival mode right now and that’s all that matters.
Ilovepink1981 Says:
Bird, I read that story, Sandra did run it
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When? I don’t recall missing a day of Sandra.
NAFTA is to blame for your lay offs thank you bill clinton!
@ Bird, if you go under “contact me” (Above Email me) type in jon b and a page will pop up and scroll down and there is your story. I read it today. Sorry to hear about this. I would be taking him to Judge Judy Or Judge Joe Brown for my money. Unfortunately in small claims court you can’t sue for over 5k., but your 15 minutes will be life changing. LOL.
Sandra it is incorrect to say that the market has collapsed. The market is struggling but it has not collapsed. Morgan Stanley should be squared away this weekend, and now is a good time to invest, IF, you don’t need that money for at least 5-7 years… if you need it before then, it has no business in the stock market.
@ Karaz:
I’m only going by what the analysts say… unless you’re an analyst.
Aunty Sandra, I’m not an analyst, but my area of expertise in banking and finance. Every Friday we go home crossing our fingers (for the industry, not ourselves) and hope for the best; it’s been this way for almost a calendar year. This writing has been on the wall for a while, that’s why those so called “economic stimulus” checks made me laugh, because that was the government basically giving us a happy meal, before they screwed us with no lube.