General Question

skfinkel's avatar

Is it time to take whatever money you have left and stick it under your pillow?

Asked by skfinkel (13511points) September 14th, 2008

It appears the banks are crashing, one after another. Are mutual funds (especially those that have stocks in banks) going to follow?

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13 Answers

allengreen's avatar

Mutual funds, yes, hedge funds, yes, insurance companies, yes, regional banks, hell yes, pension funds—yes.

Today, 9/14/2008 will live in infamy. Today is the day that Credit as we once knew it died. The domino effect will continue, and we will cease to be a bastion of wealth and become equal to developing nations over time, today was the first step.
I’ve been studying and blogging and watching this since 07/2005 and today is the day chickens have come home to roost. Look for home values to return to 1995 levels, and watch commercial real estate and its financing implode, massive vacancy in strip malls and shopping malls. The surburban model of living has collapsed.
I suggest reading “The Long Emergency” by James Kunstler for a mind opening read.
Frugality is now offically fashionable.

skfinkel's avatar

What about government bonds? cds?

Hobbes's avatar

@allengreen – I know the credit bubble is due to burst sometime, but I wasn’t aware of any big crash recently. Has something happened that I’m not aware of?

Hobbes's avatar

Never mind. I just read a report on the nationalization of several major banks…

windex's avatar

PLEASE PLEASE buy a house, or several

you will thank me in a few years

Snoopy's avatar

@skf. Buy low sell high. Now is the time to buy good solid mutual funds w/ a reliable history. Work w/ a certified financial planner who can assess your risk tolerance and guide you in the right direction.
If you are working and meet the income requirements, open a Roth IRA. The money earned is tax free, unlike in a CD. Also, you can withdraw the principle w/out penalty should the need arise.

allengreen's avatar

Snoopy you must be a financial planner, or I’ve got to get some of what you are smoking…..

Snoopy's avatar

@allengreen. Based on your earlier comments on this question, I think you are the one who is smokin’ something…..

allengreen's avatar

Buy Mutual Funds Snoopy, and let’s compare balance sheets at the end of the quarter, Please pass the Kool Aide.

Snoopy's avatar

@allengreen> This is getting boring. As I said on another thread, post your views and I’ll post mine….don’t make it personal.

Response moderated
Snoopy's avatar

@sjjensrud All great points. I would add that the money is FDIC insured up to only $250K. Not an issue for many, but worth mentioning.

welcome to Fluther :)

augustlan's avatar

[Mod says] Removed spam.

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