Economic reset? - Vintage Mustang Forums
 52Likes
Closed Thread
 
Thread Tools
post #1 of 58 (permalink) Old 10-10-2018, 11:02 PM Thread Starter
Senior Member
 
Join Date: Oct 2009
Location: far east north corner of Texas
Posts: 6,442
Garage
Economic reset?

Yeah people have been predicting that we are now in another big bubble like the one we got ourselves into before that triggered the bail outs. It is starting to tumble already. After the big bail outs "they" made some changes that would facilitate bail in's in the future and the future is coming.



Presuming that something is going to be done relatively soon, whatever that is, should I be sitting on a decent amount of cash in my bank account? I was thinking I should go ahead now and buy the rest of the stuff I need to finish putting my car back together.



I really don't want to donate against my will out of my bank account to pay off my particular banking institutions debt just because I am a saver. This comes with a reg that was changed that now defines banking customers as unsecured bank creditors. Consequently, in an economic reset, the banking customers that have savings will have their savings essentially confiscated on some percentage to help pay off the bank's debt. The bank that I am with is not one of the huge mega banks that would most likely be the ones to do this but who knows.



I don't even think the rest of the stuff I need to order is going to put that big a dent in my account. It is just sitting in my deposit account. I don't have a separate savings account at the bank.


65 2+2, 331, C4 presently apart for complete a restore
1979 Ford F150 custom, 302, C4, AC, tilt wheel, main transportation
macstang is offline  
Sponsored Links
Advertisement
 
post #2 of 58 (permalink) Old 10-10-2018, 11:06 PM
Senior Member
 
sportsroof69's Avatar
 
Join Date: Mar 2009
Location: Somewhere down in Texas
Posts: 5,391
I'm sure this won't turn political. Lol
sportsroof69 is offline  
post #3 of 58 (permalink) Old 10-10-2018, 11:09 PM
Senior Member
 
LeeFred's Avatar
 
Join Date: Oct 2005
Location: Arizona
Posts: 3,309
Quote:
Originally Posted by sportsroof69 View Post
I'm sure this won't turn political. Lol
True. GypsyR...get ready to lock it down!
romayo likes this.



I've started a blog about my car and adventures: http://65mustangfun.blogspot.com/

1965 Fastback, 289, Toploader 4 Speed, owned by me since June 1980. Originally a C-code with a C-4. 5R09C16****
LeeFred is offline  
 
post #4 of 58 (permalink) Old 10-10-2018, 11:51 PM
Senior Member
 
maladezo's Avatar
 
Join Date: Jul 2015
Location: Californication
Posts: 1,049
Garage
I don't trust banks much. I trust the large brokerage firms like Schwab or Fidellity a lot more. Seems the US public debt at over 20 trillion is going to get real expensive as rates go up. Somethings gonna give at some point, like the fed inflating it's way out of debt. That would be a good case for gold going up. But this has been in the air for like forever. Maybe the time is coming?
Not too political! Right?

'67 coupe, 390, 4spd.
maladezo is offline  
post #5 of 58 (permalink) Old 10-11-2018, 12:15 AM
Senior Member
Supporting Member
 
Redneckgearhead's Avatar
 
Join Date: Jun 2013
Location: Sauk Centre MN.
Posts: 1,650
It's only been predicted for about 10 years now, if they say it long enough it'll happen and the ones saying it will scream "I told you so."

Sent from my Moto Z (2) using Tapatalk
silverblueBP, TheRktmn and rpm like this.

Scott

Never let the truth get in the way of a good story
Redneckgearhead is offline  
post #6 of 58 (permalink) Old 10-11-2018, 12:40 AM
Senior Member
 
Turnall's Avatar
 
Join Date: Jan 2013
Location: Dothan, AL
Posts: 4,239
Quote:
Originally Posted by macstang View Post
Yeah people have been predicting that we are now in another big bubble like the one we got ourselves into before that triggered the bail outs. It is starting to tumble already. After the big bail outs "they" made some changes that would facilitate bail in's in the future and the future is coming.



Presuming that something is going to be done relatively soon, whatever that is, should I be sitting on a decent amount of cash in my bank account? I was thinking I should go ahead now and buy the rest of the stuff I need to finish putting my car back together.



I really don't want to donate against my will out of my bank account to pay off my particular banking institutions debt just because I am a saver. This comes with a reg that was changed that now defines banking customers as unsecured bank creditors. Consequently, in an economic reset, the banking customers that have savings will have their savings essentially confiscated on some percentage to help pay off the bank's debt. The bank that I am with is not one of the huge mega banks that would most likely be the ones to do this but who knows.



I don't even think the rest of the stuff I need to order is going to put that big a dent in my account. It is just sitting in my deposit account. I don't have a separate savings account at the bank.
The hell you say...Go ahead and buy.

The sky is falling is no way to live...

Allen
rpm likes this.

My build thread: Allen's Build Thread

My go fast build thread: Go Fast Build Thread
Turnall is offline  
post #7 of 58 (permalink) Old 10-11-2018, 02:00 AM
Senior Member
 
vegasloki's Avatar
 
Join Date: Nov 2017
Location: Vegas
Posts: 1,195
The FDIC will insure your account to US$250k as long as your institution is FDIC protected. Unless you have more than that you're OK. If you have more than $250k just hanging out in a checking account you probably need better investment advice.

https://www.fdic.gov/deposit/deposits/faq.html

67 Hardtop, brought it back to a driver
http://desertratretro.com
vegasloki is offline  
post #8 of 58 (permalink) Old 10-11-2018, 06:34 AM
Senior Member
 
JD08's Avatar
 
Join Date: Nov 2013
Location: FL
Posts: 2,197
Quote:
Originally Posted by Redneckgearhead View Post
It's only been predicted for about 10 years now, if they say it long enough it'll happen and the ones saying it will scream "I told you so."

Sent from my Moto Z (2) using Tapatalk

And then they'll spend the next 10 years selling their newsletter to rubes who will point out how they accurately predicted the crash.
TheRktmn and Redneckgearhead like this.

1970 Mach 1 M code
1990 5.0 LX Limited Edition

I keep noticing the DOT puts up signs to honor my burnouts. That's nice of them.
JD08 is offline  
post #9 of 58 (permalink) Old 10-11-2018, 06:37 AM
Senior Member
Supporting Member
 
Redneckgearhead's Avatar
 
Join Date: Jun 2013
Location: Sauk Centre MN.
Posts: 1,650
So wait, you think the banks going to confiscate your money?

Sent from my Moto Z (2) using Tapatalk

Scott

Never let the truth get in the way of a good story
Redneckgearhead is offline  
post #10 of 58 (permalink) Old 10-11-2018, 08:01 AM Thread Starter
Senior Member
 
Join Date: Oct 2009
Location: far east north corner of Texas
Posts: 6,442
Garage
Quote:
Originally Posted by Redneckgearhead View Post
So wait, you think the banks going to confiscate your money?

Sent from my Moto Z (2) using Tapatalk

After the bail out by the Fed, regulations got passed to allow for "bail in's" because the Federal Reserve doesn't have another bail out in them at this point. Actually, they most likely do but they do not want to be responsible so they lobbied the world governments(G20) to pass the bail in scheme and they did. Now saving TBTF banks has been passed on to US.



Under a bail in, something happens similar to what happened on Cyprus. The regulations are part of the Dodd-Frank Act in the U.S. It allows the banks to use bank share holders investments as well as depositors and regular banking customers accounts to bail-in the banking institutions if they are about to fail. Pension funds are also considered to be bail in assets now. Derivatives which are again the most likely cause of banks eminent failure are protected. There is presently close to 300 trillion in derivatives outstanding.



Deposits are considered to be unsecured liabilities. The banks have been now defined to be the owners of your deposits. You are considered to be a creditor. In a declared bail-in situation, FDIC protection doesn't work because the FDIC and its responsibilities in a bail in have been re-written to facilitate the bail ins. I believe that the failing bank is supposed to issue you contingent capital bonds(bail in bonds) for confiscating your money but the likelihood of ever cashing those in later and breaking even is very low.


The thing is full of financial mumbo jumbo but this is what I think I have been able to understand and grasp from reading it all. Gave me a head ache.


65 2+2, 331, C4 presently apart for complete a restore
1979 Ford F150 custom, 302, C4, AC, tilt wheel, main transportation

Last edited by macstang; 10-11-2018 at 08:04 AM.
macstang is offline  
post #11 of 58 (permalink) Old 10-11-2018, 10:58 AM
Just some guy
Supporting Member
 
GypsyR's Avatar
 
Join Date: Jun 2001
Location: SC foothills, USA
Posts: 18,803
Garage
Not too political...yet.

I too trust those big ol' financial firms. I used to have my money in Enron. After that I decided to spread out a bit and put half in AIG and the other half at Lehman Brothers. Yep, worked out REAL well there.

OK, I did no such thing. But those companies affected people I know. If the FDIC guarantee is no longer quite what we thought it was, that is disturbing. I feel I need to look into that some more. Thanks for the heads up on that.
GypsyR is offline  
post #12 of 58 (permalink) Old 10-11-2018, 12:03 PM
Senior Member
Supporting Member
 
Redneckgearhead's Avatar
 
Join Date: Jun 2013
Location: Sauk Centre MN.
Posts: 1,650
Have a source for this?

Sent from my Moto Z (2) using Tapatalk
MUSTANG65FBK likes this.

Scott

Never let the truth get in the way of a good story
Redneckgearhead is offline  
post #13 of 58 (permalink) Old 10-11-2018, 12:06 PM
Senior Member
Supporting Member
 
Redneckgearhead's Avatar
 
Join Date: Jun 2013
Location: Sauk Centre MN.
Posts: 1,650
This doesn't logic out to me. It's still a bail out for one, bail in doesn't fit. Two the first thing that's going to happen is people are going to remove their cash asap after part of it's been taken so the bank fails anyways.

Sent from my Moto Z (2) using Tapatalk

Scott

Never let the truth get in the way of a good story
Redneckgearhead is offline  
post #14 of 58 (permalink) Old 10-11-2018, 01:15 PM
Senior Member
 
NEFaurora's Avatar
 
Join Date: Dec 2007
Location: Melbourne, FL
Posts: 8,093
Send a message via AIM to NEFaurora
My advice, If you are going to buy something, Buy it now. For two reasons, #1. If overseas parts prices rise (which is most likely to happen), You'll beat it to the punch and save some bucks... #2. Buy the parts that you need now while you still can and while they are still out there. You might not just face increased prices, but increased demand as well for parts that can no longer be easily sourced.

Now is the time to buy.

And the recent stock market drop in the last two days?...? It's most likely just a "Market Correction" based on fears... I would think that it will back to normal within a few weeks. If it's prolonged pain, then that will definitely be a different story.

)

Tony K.
Redneckgearhead and vegasloki like this.



Tony Kovar
Melbourne, FL (Formerly from Long Island, NY!)

1965 Mustang Convertible 200cid I6, 3spd Manual
1966 Mustang Sprint 200 Registry Owner/Moderator
1966 Mustang Sprint 200 Convertible 200cid I6, C4 Auto
2007 Mustang V6 Convertible w/ Pony Package
MCA#70001
NEFaurora is online now  
post #15 of 58 (permalink) Old 10-11-2018, 01:24 PM
Senior Member
 
Join Date: Jun 2011
Location: Houston, TX
Posts: 626
Quote:
Originally Posted by vegasloki View Post
The FDIC will insure your account to US$250k as long as your institution is FDIC protected. Unless you have more than that you're OK. If you have more than $250k just hanging out in a checking account you probably need better investment advice.

https://www.fdic.gov/deposit/deposits/faq.html
If you have more than $250k in one account, spread it around so that it is in different accounts. Each account is protected up to $250k

If you want to see the condition of the economy, check the federal reserve beige book.
https://www.federalreserve.gov/monet...ok-default.htm

The real turmoil will be in 2024 when there will be uncertainties. Business and individuals will save their money instead of spend or invest because they do not know who the next president will be and what policy changes will come in Nov. Happens ever 8 years.

If you are really worried about the economy, buy gold. It is not effected by inflation.

'67 Coupe, 347 w/ Holley Terminator EFI
AOD w/ B&M short Megashifter
EPAS w/ Bruno Box
Shelby Drop, 17" Replica's

Last edited by bacchus203; 10-11-2018 at 01:27 PM.
bacchus203 is offline  
Sponsored Links
Advertisement
 
Closed Thread

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Vintage Mustang Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off

 
For the best viewing experience please update your browser to Google Chrome