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283 Comments
- rpi22, on 07/22/2008, -3/+111¨Bear Stearns is well-capitalized!¨ -- Stearns CEO a few days before imploding
¨The Financial markets are working¨ -- George Bush on the day of the Bear Stearns collapse
¨The worst is behind us.¨ -- Every talking head, political pundit, and analyst, just after Bear Stearns´ collapse
¨Fannie Mae and Freddie Mac are well-capitalized¨ -- Bernanke and Paulson, a few days before announcing a $25 Billion bailout with more relief to come
What´s next?! - Eparause, on 07/23/2008, -11/+63Handle your money better, problem solved.
- Panzwhore, on 07/23/2008, -6/+53that free checking came back to bite them in the ass
- rpi22, on 07/22/2008, -2/+42I forgot to mention, ¨The problems in the subprime market are contained and will not affect the economy at large. I expect housing to recover in the second half of 2008.¨ - Ben Bernenke
Geez, my magic 8-ball does a better job forecasting the economy - paulot, on 07/22/2008, -5/+39They are totally *****. Due to their bad timing of picking up Golden West Financial, there are now serious rumors that Wachovia will be the next IndyMac.
- daivos, on 07/22/2008, -2/+33If Wachovia were to fall, it would be far worse than IndyMac.
- skoles, on 07/23/2008, -1/+28Project Mayhem is a success!
- StingingNettle, on 07/22/2008, -5/+30And they were laundering drug money! http://digg.com/world_news/Feds_look_at_Wachovia_i ...
What a bunch of scum. - rizla420, on 07/23/2008, -1/+25Here's the issue with the FDIC and their insurance. They've only got about 52 Billion dollars and they say that they can handle a lot of smaller banks going under, but if major banks such as Wachovia and others start to fail they wont be able to back them all.
I listened to an interesting pod cast yesterday where this guy said something about the banking industry being different than other industries in the sense that if a bank goes under, more people will be apt to withdraw their funds from their current bank even if their bank is in good standing. Its something like the lemming effect.
If we have a massive run on the bank, the FDIC will not able to gaurantee everyone. They FED will have to step in and impose limits on withdrawls.
This all stems from fractional reserves my friends... yea that Ron Paul *****. Funny, in hindsight people who thought Ron Paul was a loonie will realize that he was onto something. Sadly it'll be too late by then.
Todo we're not in Kansas anymore. The other shoe will drop sometime this year. If anyone has any ideas on a safe place to move funds aside from swiss banks or Euros or Yen's etc (which will all go down with us) let me know. - MiamiRox, on 07/23/2008, -1/+25My guy works there in the home loan department, he was just laid off this week :(
Things there were so dismal. No business, basically they had nothing to do. - FrancoisLyon, on 07/23/2008, -0/+22PBS did a whole hour show about all the schemes Wachovia used to avoid paying corporate income taxes when they were doing well, now if they fail, you can bet that tax dollars will bail them out.
http://redirx.com/?04aj - schroeder, on 07/23/2008, -15/+34***** them and their $35 per transaction overdraft fees. I've gone over by less than a dollar many times. And if the merchant makes an error that causes you to overdraft, you have to pay for that too, because, of course, it's not "their" fault. And they bill the largest charges first so all the smaller charges get the overdraft fees. ***** them. I hope they die. I'm closing my account and sticking with private banks with percentage based overdraft fees.
- Bloodwine, on 07/23/2008, -0/+18The sad reality is that we'll all end up holding the bag for all these failed banks. Just let them fail.
I'd rather get a 10-20 year depression out of the way if it means hitting the reset switch. - datastorageguy, on 07/23/2008, -12/+29Oh they will come get you when Obama wins. Kiss your shotgun goodbye.
- BoneheadFarker, on 07/23/2008, -1/+18You're assuming that they are trying to be truth when they say these things. It's all just a game to them...
- logicalnoise, on 07/23/2008, -0/+15buy jar of vasoline, lube up real nice, get ready to bleed out your ass.
- oracle202, on 07/23/2008, -8/+20Title is misleading, poster is biased. Yes, banks are in big trouble. That doesn't mean Wachovia is imploding. Please keep your hard earned opinions out of the titles and descriptions and into the comments.
- zyklon, on 07/23/2008, -5/+17What's next? The fall of Rome.
- SouthernGuy118, on 07/23/2008, -2/+14of course it's working. Banks that made risky investments are collapsing as it should.
What isn't working is the neo-con's plan of non-intervention unless it saves a few corporate buddies. If the neo-cons wanted non-intervention, then they should have stuck with non-intervention all the way through.
The second the government bailed a bank, it got every right to regulate them - brianjlowry, on 07/23/2008, -0/+12Weird fetish, Mr. Bates.
- jimmies, on 07/23/2008, -1/+13A couple years ago they were America's darlings. How the mighty have fallen.
- billybillyboy, on 07/23/2008, -3/+14You signed the contract. You are resposible for handling your money and accounts in such a way so as to not incurr those fees set forth in your contract. Take responsibility for your own actions, as these banks should be taking responsibility for their actions. My money is all in shoebox.
- captainslack, on 07/23/2008, -0/+11If they go under, do I still have to repay my credit card debt to them?
- CrazedLeper, on 07/23/2008, -1/+11I've seen most of these videos. It's good stuff. Since it's bereft of that sweet, sweet propaganda for which the ignorant masses have developed a preference, they should all hate it.
- phoenixshard, on 07/23/2008, -3/+12"Wachovia said it ended the quarter with a Tier 1 capital ratio, which measures its ability to cover losses, of 8 percent. Regulators consider 6 percent sufficient. Wachovia raised $8.05 billion of capital in April.
In afternoon trading, Wachovia shares were up 86 cents, or 6.5 percent, at $14.04 on the New York Stock Exchange. The cost of protecting Wachovia debt against default fell, according to Phoenix Partners Group"
Really sounds like they're going to implode to me. /sarcasm
Might want to read the entire article instead of just the headline that somebody posted. - dethl, on 07/23/2008, -0/+9Well then, let me refine my question: Any recommendations for a lender that doesn't involve my ass being brutalized in some way?
- ir1337, on 07/23/2008, -0/+9Speaking from inside the four walls of a bank...all transactions on a given day are batched and run big to small. That's the way it is at most if not all. Overdraftees are HUGE profit centers for banks. We love them. Setting up transactions to benefit the bank is de riguer.
- logicalnoise, on 07/23/2008, -0/+9yep and I'm sure there's something in your contaract that will raise your rate accordingly.
- Nerys, on 07/23/2008, -3/+12Please I hope they go out of business and hard!! They are criminals. Embezzlement and Racketeering are daily practices at this bank (and many others) I overdrew my account with a single purchase overdrawing the account by $12.50 They charged a $35 overdraft fee (criminal on its own but survivable) a few days later "fees" started to rack up.
Over the next few days they proceeded to DELETE roughly 10 days worth of transactions and then proceeded to REWRITE history in a new more convenient order. One that turns a $35 fee for a $12.50 overdraft into almost $400 in overdraft fees.
I tried to "reason" with them but they were unwilling to see reason I spent several weeks trying to compromise. They refused. I deposited my $12.50 and told them to F off.
Apparently Embezzlement is LEGAL for banks. (this new comment box SUCKS it keeps BOUNCING its shape and makes it very hard to type.
http://dictionary.reference.com/search?r=2&q=embez ...
They are taking my money by "altering" the records of the transactions they STEAL my money. Its the definition of embezzlement.
This all started with CHECKS. Checks have NUMBERS. this created a problem what happens if check 101 comes in BEFORE check 100 comes in what happens if check 100 never comes in.
So a law was passed permitting them to pay out the checks OUT of order. The intent was to allow them to deposit check 101 before getting check 100 it was worded a little broad and banks abused this.
Originally SOME good intentions may have resulted from this. If they took in your $1200 mortgage payment before a few small checks they could avoid bouncing your very important mortgage payment.
It did not take long before banks realized they could abuse this. By ordering the checks from "LARGEST" to "SMALLEST" they could maximize the number of overdraft fees they can charge you. THIS is why there is a "clearing" time for checks much "longer" than is really needed.
The longer they can keep the checks in "limbo" or "pending" status the more time that passes for the number of checks to accumulate and increase the potential profit by a reording or the checks.
Then something happened. CHECK CARDS. No more checks. Not only that but they worked JUST like a credit card. If you did not have enough money the charge was DECLINED! This was a problem they made a TON LOAD of money from these fees. Thats when they realized they could do the same thing by making CC charged PENDING and reorder them but they needed a way to permit you to overdraw the account to capitalize on this.
Thats where there "convenient" micro loans come into play. They will LET you overdraw the account for the low low price of $35 per transaction. Cute. So if you have $2 in the account that $2.50 slurpee will now cost you $37.50 How nice of them.
SO users (such as me) demanded they take this "loan" ability OFF. I did not want it. Back and force and eventually they made it COMPULSORY. you HAD to accept this loan. (is that not racketeering by definition?) A racket is typically a fraud scheme where they offer for a fee a solution but they themselves MANUFACTURED the problem for which they now want you to pay to solve.
SUCH as a brute walking into your deli and demanding money for PROTECTION services. FROM HIM ie he will beat you up unless you pay him to NOT beat you up. Thats a RACKET.
Then it gets worse they say why not get overdraft protection. FOR A FEE off course. A service you WOULD NOT NEED if they did not FORCE you to accept micro loans and would simply RETURN yout debit card to the way it works for nearly 10 years. DECLINE charges when there is not sufficient funds.
They have stretched and abused the rule that lets them take checks out of order and are using it to rape and rob the very people who can not afford it.
Let me give you an example.
Lets say you have $45 in your account. You go out tonight you get a slurpee for $3 and they a back of chips for $2 at a gas station right before you put $10 of gas into your car. You get to the movies and buy a ticket for $10 and buy $5 in candy. You realized its a long movie and your gonna be thirsty and go back for a $5 cola. On the way home you hit the drive thru at mc donalds for $8.
Do the math. you have spent $43 and have $2 left in your account.
You wake up in the morning to a negative balance. oops you forgot about your $40 credit card payment. Damn. Now you have a negative balance and a $35 fee for the CC payment but at least they paid it.
The next day you wake up and suddenly things are quite different. NOW you have a negative balance of -$283 !!! how did that happen??
Easy. They ERASED all those things you bought a few nights ago and put the CC charge "first" so it cleared NO fee. but now your down to $5 so they then apply one of your $10 charges. Now you overdrew the account by $5 (your first fee) they they apply the other charges progressively smaller so instead of one overdraft you now have 7 $35 fees.
Cute ehh? and although its completely illegal they get away with it because the only people that will ever encounter it are people who can never afford to do anything about it. it RUINS peoples lives. For some people creating debt larged than some peoples salary for weeks even a month.
One might say well manage your money better. Does that mean they should be allowed to break the rules and ABUSE the condition to there advantage. Being responsible for my money is absorbing one fee for the overdraft. THEY Created the conditions to allows the fees to multiply with malicious intent.
The only reason I give a bank my money is so THEY can manage some of these issues for me otherwise I have no need for a bank. When they came out with debit cards that WORKED PROPERLY it was BLISS.
IF I DID THIS AT MY JOB I would be lucky to just get fired and avoid PRISON TIME. They do it openly and with continous malevalent intent and they just say its our policy.
Since when are policies allowed to break the law. Can I create a policy that says you are to murder anyone I choose and its legaly because its a policy?
They are literally orginized criminal institutions. - stealthc, on 07/23/2008, -3/+12This isn't a banking crisis, or a credit crisis. It's a monetary crisis, and the whole world will feel it eventually.
Fiat money is about to come back and kick us all right square in the balls. - RudeTurnip, on 07/23/2008, -0/+8This.
During college, I used to work for customer service for Corestates Bank, which was bought by First Union, which was bought by Wachovia. Being a left-leaning college student who didn't intend to make customer service a career, I tended to side more with the customers...until I heard every freaking excuse as to why their accounts were getting overdrawn. Out of thousands of phone calls, I could count on my hand how many times a merchant or a bank teller screwed up and I made sure the customer was taken care of. Every other time it was simply poor money management and passing the buck (no pun intended). - skyshock1, on 07/23/2008, -0/+8AWESOME! I can't tell you how many times I was ***** over by Wachovia. I couldn't leave their banking services fast enough.
- Lucas123, on 07/23/2008, -3/+11What chaps my hide are the autopilot layoffs. Lose money, lay 'em off. There's no loyalty in business anymore. Obvious, but sad.
- gcnaddict, on 07/23/2008, -0/+8This might be the only bank whose collapse I'd actually be happy about.
I doubt I'm alone either. - devophl, on 07/23/2008, -1/+9rizla is correct. The FDIC only keeps enough funds to handle less than 1/10th of 1% of the money held in its insured banks. If a 1931 style run on the banks were to occur, the FDIC would stop paying out. In essence, most of us are out of luck.
Depending on the source, anywhere from 500 to as many as 3000 banks are in bad shape and if financials don't improve, most of them could fail in the next 12-18 months.
I've heard recently that it might not be a bad idea to keep about one to two months worth of income in cash just in case your bank goes belly up. The Fed would basically close the bank down for several weeks and you will have limited or no access to your money. - relic180, on 07/23/2008, -1/+9That's funny. The little stock ticker has them up by almost a full point since this morning. I bet word got out already on wall street that the government has already set aside the funds to bail them out too.
- jmpeagle, on 07/23/2008, -0/+8it hasn't gone bankrupt
- sloo, on 07/23/2008, -1/+9I bank at Wachovia, Im glad I dont have any investment to them. Ill just go to Bank of America when they go under since they own most of my city and have more locations (Charlotte, NC)
- scottphphq, on 07/23/2008, -0/+8I don’t understand how it’s the banks fault you have to borrow money for burger king. You agreed to that fee when you signed up for the account. Not only do you need to learn how to manage your money, you also need to learn how to read an agreement before you sign it.
- pockiez, on 07/23/2008, -1/+9People digg you down because you're not an idiot. If you spend money that you have, then there isn't a problem. Why let your bank account get below 100 dollars?
- dafragsta, on 07/23/2008, -1/+9It's gonna be Road Warriors before you know it.
- logicalnoise, on 07/23/2008, -0/+7I agree, free money as in it won't be worth anything.
- SkippyDoorknob, on 07/23/2008, -1/+8Just send your payments to me, I'll make sure it's all taken care of. I'll send you my Paypal info.
- DyceFreak, on 07/23/2008, -0/+7I think its about time I switch back from direct deposit
- airwalkery2k, on 07/23/2008, -0/+7Isn't it funny how when a bank fails, they'll have no trouble losing your money, but losing your debt isn't so easy?
- AnarkeIncarnate, on 07/23/2008, -0/+7Dude. You seriously need to chillax. Go pick up your bread. We're on the way to the circus; See ya there.
- brentinkc, on 07/23/2008, -0/+7Correct, correlation does not equal causation. However, that doesn't necessarily mean that it happened by chance.
- obsolite, on 07/23/2008, -2/+9Well played.
- TheDreadDiggerD, on 07/23/2008, -0/+7The first rule of Project Mayhem is you do not speak about Project Mayhem.
- Elranzer, on 07/23/2008, -1/+8Now might be a good time to transfer my student loans to Wachovia.
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