August 11, 2007

HousingPANIC Stupid Question of the Day

How confident are you that the ATMs will continue to work?

Would you bet your life on it?

Just asking...


Anonymous said...

Keith ,you crack me up . Now that we know the Feds will drop the money from high ,what's the problem ?

No ,really ...I pulled out a little extra cash to keep on hand in case some system is down for a couple of days .

Vlad said...

I dunno, what's that sound... oh yeah, it's the helicopters spooling up! ATMs must be fully stocked... no matter the cost! :o

ForWhomTheTollBuilds said...

Off topic but I gotta post it here:

Swann is posting hilariously out of touch proofs that everything is fine (think "Ben Stein"). I posted the following response in the comments to his latest post and the bugger screened it out. Maybe it was my username?

Anyway, dont let it get to you like I let it get to me because there is no joy for the clever over there. Here is what I wrote:


Exactly Brian.

Whether a young couple forms a household by buying a starter home or forms two households as part of a divorce brought on by financial distress, the beat goes on for the commissioned salesman.

The realtor’s enemy is not falling prices, but lack of volume. Many lawyers who have specialized in property closings over the last few years are gearing up to handle the wave of foreclosures.

There will always be something to capture the public’s imagination regardless of Chicken Little’s academic protests about fundamentals ruling a rational marketplace.

anonymous wimp said...

Even though the central bankers have refined their trade in the last 100 or so years, keep in mind that in years past significant panics and financial shake-ups have occurred for reasons FAR FAR FAR LESS VALID than for what we are seeing today.

lili98 said...

I am right with you there, Keith!! Just saw the list of European banks invested in Subprime Mortgages...One of them is ING with 3.2 billion euros or 25% of its investments.

Anonymous said...

Which of the big banks are the riskiest ones to keep your money in at your opinion?
I have some $40K+ at Wamu saving account and getting nervous

Does anybody really think that it is going to be that bad that one can loose the bank deposits?

Anonymous said...

in a panic the ATM's will run out.
i have 1 paycheck worth of cash in a safe and carry aprx a g. hope for the best but prepare for the worst. cash is king when TSHTF the means to defend it is esential.

bitter idiot lies said...

Bitter Idiot Renter claims that Libertarians are calling for a bailout of Wall Street.

So far I've only heard Democrats like Hillary Clinton, Chris Dodd, Barrack Obama, Barney Frank and Chuck Schumer call for a bailout of hedge funds and Goldman Sachs.

So the lies and spin continue from the liberal socialists and their banker buddies

yoski said...

It might quit working short term. Just long enough for helicopter Ben to arrive on the sceen with a bunch of crisp new dollar bills.

decaffeinated said...

Normally, I'd laugh at this question. But now that WAMU is whimpering, I'm uncomfortable.

Screaming said...

helicopters have been dropping s**tloads of cash, there's money - that's not the problem - the problem is it isn't buying anything.

Remember the US is already bankrupt.

Anonymous said...

I don't know if ATMs are useful in Zimbabwe. Better US learns from them.

Anonymous said...

What's an ATMs?

SPECTRE of Deflation said...

Pulled out enough cash to cover expenses for weeks if need be, but depending on what the FED does, I may want more.

Additionally, I may add Gold and Silver if Helo-Ben does the drop. Knowing history, he must hold rates and allow markets to correct, but if not, I'm going to adjust my thinking and portfolio accordingly.

On Monday the 3 day Repos they did yesterday come due at 5.25% interest. The thieves in suits have this weekend to come up with another scam.

Anonymous said...

Yeah I rely on what the gulf news has to say. Get real.

Anonymous said...

One positive affect from all this,illegals going home.

Both González and Raimundo said they are sick of the constant fear and the crushing days of waiting for work and are among those who are considering heading home.

''If the situation stays this way, not just me but maybe everyone will be leaving,'' Raimundo said.

''The only thing I'm waiting for is to make some money, because I don't want to go home empty-handed,'' he said. ``With all that's happening, I don't want to be here anymore.''

hey Raimundo, don't let the door hit your ass on the way out ok amigo.

alan's butt boy said...

That's right vlad, our buddy, helicopter commander Ben knows what he needs to do. This system is now too big to fail and it will be maintained at all costs. All currencies will lose value as the central banks pump in liquidity to keep the machine running. Asian currencies will probably fare better than most because they still make things and have savings.

The losers will be cash hoarders (like HPers) who are waiting for the big crash. Ain't gonna happen -- DOW hits 17K by year end.

Don't fight the Fed!

Anonymous said...

Why? Are you worried they'll run out of ink?

Anonymous said...


"the problem is contained!!!!!!!!"

ratman said...

There's nothing more selfish than the DemoRats taxing hard working Americans to buy votes with welfare programs for flippers, lenders and generations of lazy welfare queens.

SPECTRE of Deflation said...

08/09/2007 $8,969,803,128,789.47

America's debt hit a new high on Thursday. I can't wait till next week to see how the wizards from Oz keep the sinking Titanic from going down. We have to be very close to our debt ceiling as well.

james said...

aside from random technical glitches? None. Now, will we see them up the daily withdrawal amount to 1000 so you can afford to get a coke AND a burger? Maybe. The problem wont be a run on the banks. The problem will be inflation.

SPECTRE of Deflation said...

These people are nothing more than suited thieves:

Bear Stearns Fat Cats Cashed Out at the Top

By Brett Arends
Mutual Funds Columnist
8/8/2007 9:50 AM EDT

BOSTON -- Wall Street bank Bear Stearns is right at the heart of the subprime mortgage meltdown. It's reeling from massive, multibillion-dollar losses at two hedge funds.

And every investor who has watched the stock collapse from more than $172 to just $117.78 in a few months is probably kicking himself for not selling at least some back at the peak, before the crisis hit.

Four savvy investors did just that.

Step forward, Alan Greenberg, Sam Molinaro, James Cayne and Warren Spector.

Who are they?

Top honchos at ... Bear Stearns. (Or they were: Spector has now left in a management shake-up. The others remain.)

Between them, the four quietly cashed out more than $57 million worth of company stock before the crisis hit.

The executives saved themselves nearly $16 million by their astutely timed sales, which were disclosed in a series of public filings.

Those losses got passed on to the unlucky outside investors who bought the stock.

Bear Stearns declined to comment.

These executives did nothing wrong. Many of the stock sales were made as share options came due at the end of 2006. Certain executives had made similar big trades in previous years. The trades were made several months before problems surfaced at the company's hedge funds in May.

Furthermore, Bear Stearns executives are still holding plenty of stock in the company.

Nonetheless, their timing last winter was notable for its good fortune, if nothing else. Once again it shows that company insiders seem to prove pretty good at knowing when their own stock is overvalued and when the future risks do not justify the price.

Between the end of November 2006 and the end of March this year, former Bear Stearns boss -- and current executive committee chairman -- Greenberg sold 179,277 shares at an average price of about $161, raising a total of $28.8 million.

Today the value of those shares has collapsed by $7.7 million to just $21.1 million.

After deducting his stock option costs, Greenberg made $17.7 million in profits before tax. Had he waited till now to sell the shares, he would have made just $10 million.

Nice work if you can get it, as they say.

Greenberg was not alone. Between December last year and the end of March, the now-ousted co-president Warren Spector dumped 116,255 shares at an average price of $164, raising a total of $19.1 million.

The value of those shares today: just $13.7 million.

After option expenses, Spector made $16.4 million. That's $5.4 million more than he would have made if he had waited.

Last December chairman and CEO James Cayne cashed out 46,415 shares at around $165, raising $7.6 million

Value today? Two million dollars less.

And Samuel Molinaro, the chief financial officer who just got promoted to chief operating officer thanks to the company's financial crisis, saved himself more than $400,000 by selling shares last December for $1.5 million instead of waiting until now.

It is, perhaps, a shame that Bear Stearns' two disastrous hedge funds didn't prove as nimble and astute in their trading as the guys at the top. Instead, they were caught holding junk mortgage paper as default rates soared.

Stock sales weren't the only way top executives at Bear Stearns pocketed a fortune even as they sailed the Titanic straight at the iceberg. Company filings reveal that Bear Stearns also awarded a staggering $140 million in bonuses to top executives last year.

And by good fortune, just over half of those bonuses were paid in cash rather than in the company's fast-shrinking shares.

devestment said...

I don’t use ATM's, they are an invasion of privacy and open the user up to fraud. Also, when an ATM card is used like a credit card, it creates additional paperwork and promotes careless spending

Mark in San Diego said...

Of course they will work, a Bernake Printing Machine (tm) will be attached to each ATM. . .Starbucks coffee. . .$45 a cup!

Anonymous said...

inflation coming got gold

Westparker said...

ATM's will always work... what comes out of them may be worthless.

Mark in San Diego said...

Editorial Comment - Depression vs. Recession

A normal recession is part of the business cycle, and is generally the result of too many products in the market (i.e. large inventory of cars), and a saturated consumer. . .companies cut back on production, lay off workers, cause higher unemployment, and a recession ensues. . .

Depressions usually follow the bursting of a bubble - in 1929, the stock market was a bubble, and commodities, houses, etc. were all valued over their logical fair value. . .taxi drivers and shoeshine boys were all speculating in the stock market. . .when the bubble crashed, a depression ensued - despite the fact unemployment in 1929 was very low, and the economy "strong."

The reason economists can't seem to understand the current situation is that they have never seen the beginning of a depression in their lifetime. . .now that housing prices are in freefall, boat prices and vacation homes are in freefall, and hedgefunds are blowing up (hence the rich get it this time too). . .we are seeing an implosion of net worth. Unemployment will follow (already massive layoffs in mortgage, real estate, construction, etc.) Then consumer spending stops on a dime, and depression follows. . .then DEFLATION takes place across MOST of the economy - this time food will likely continue to increase in price. . .

Mark in San Diego

Anonymous said...

I have about 5000 in a safety deposit box and an additional thousand in my gun safe. I figure they have to open to let people get their safety deposit box items withen a week or so.

I asked this dufus at Wells Fargo how long it would take for the FDIC to reimburse my account if they failed. He actually looked scared but daid nobody knew since no banks have failed in a while.

Guess we willwatch Indy Mac to find out

stuckinthecity said...

Great topic. Thought about it the other day. The sheeple will just use credit cards if not $$$ in ATM. Can't have a run on the bank if the only thing in the banks are 0's and 1's.

ammu said...

yes, ATM's will work.

Anonymous said...

Yes. ATM's will work.

FL_Bust said...

Is it really that bad !!??
That's some scary shit !!

What to do with my 401K, E-trade accounts ? Oh my god !
I'm buying gold bullions with my cash .

SeattleMoose said...

The money will be there all is just that the purchasing power is quickly eroding.

And gold....another "belief" based value. Besides if things get really bad and you are the guy who smugly goes to buy his weekly goods with a gold coin....every eye in the place is gonna be on you and follow you back to your stash.

BTW....don't think the government can't making holding gold illegal by us mere mortals

No, the only things with "real" value are things you can eat and drink, gasoline, and weapons to defend yourself.

The "survivalists" in a way are is just that up until now...their timing has been bad. Which means that from most people's perspective they have been wasting their lives for a long time hiding in their caves.

But in the past few weeks in caves across the country the #1 song has been "Our Day Will Come".....

W.C. Varones said...

Who needs an ATM when you've got a .45?

Anonymous said...

Not very.

Liquidated my money market fund yesterday - to pure cash - take home cash.

BTW : those of you have CD's and MM funds might want to know that a lot of them are invested in mortgage paper - you know - like CDO's - the ones that are worthless ?

Surprise !

And good luck getting to the real truth of that one. Your money (just like your mortgage) is no longer held by the bank/credit union you do business with - it has been adjusted, stamped, collateralized, stripped, combined and recombined.

Could be on Mars for all you know.

My money's in my closet.

Course if everyone does this the system is guaranteed to crash - so the rest of you really ought to wait.

Anonymous said...

One has to wonder with all the loans and credit cards that BAC is giving to illegal aliens. They only need a metricula consular card. Now everyone has access to my savings. Let the looting begin!

BAC must feel pretty dumb about this program it started in August. Oh, your the source of toxic loans?

Roccman said...

till wednesday...then tshtf

burn baby burn said...

I think the ATM's will work the real question is will the dollars that come out of them be worth the paper they are printed on? Remember when it cost more than one cent to make a penny? That is why they are no longer made of solid copper.

Anonymous said...

Remember, folks, the worst month for the stock market is September.

Red Pill said...

Pretty confident?

Michelle said...

I'm not worried about not being able to get my dollars out of the system. I'm worried that my next wallet will be a wheelbarrow.

Anonymous said...

The whole bubble and crash thing was scripped by the FED; years ago.

Why? Peak oil. The only way to kill of demand for oil was to bust the middle class down to size.

That's what we are witnessing now, and it will continue for a few more years.

What happens next is anybodys guess.

Hayley said...

Funny, you should mention this, I was trying to decide if I was overreacting wondering if it was a possibility. I was advising a relative to liquidate some stock (well I've been advising that for months, but who listens...) and was wondering where his money would be most accessible/safe.

BTW, are the MM accounts at investment brokerages insured?

Anonymous said...

OK Keith. You have gone too far with this one I think ;)

g said...

i would think the question you'd ask would be
"when will atm's start letting you withdraw gold nuggets?"
i thought cash was worthless anyway? why cant i get silver and gold out of my atm's!?

borkafatty said...

Here ion 1929 we don't have ATM'S

Anonymous said...

ATMs will work fine. The question is will they be able to keep them stocked with cash.

Ricky said...

not just a recession, more than a recession

hes making some scary sense

Ricky said...

not just a recession, more than a recession

hes making some scary sense

Ricky said...

Ron Paul

one smart cookie, yes sir

Anonymous said...

Ron Paul

one smart cookie, yes sir


Anonymous said...

when the banks fail their atms will stop working one by one

Herecomesthecrash said...

Haley said:"BTW, are the MM accounts at investment brokerages insured"?

No I doubt it. Call to doublecheck.

Anonymous said...

Dide I hear that helicopter ben goosed the market last week with more money than the yearly GDP of canada ..a very mineral rich..low population..largest? country in the world??? Amazing???

Anonymous said...

Re the respondent to Bitter Idiot,
re Dems wanting to bail out...

Actually the Fed did the bailing on
Friday, and I bet they are largely
if not completely Republicans. Now
the money thrown down the sluice
did not come from a designated,
appropriated fund passed into law, but it certainly was a bailout by
most any definition: and if you
disagree, what would Friday have been like without those funds? Oh,
my, it would have been so scary as
my grandson would say...PKK

Anonymous said...

Just went to my local ATM, it gave me a I.O.U

showmenouns said...

Here's an article titled
Trump on the Economy, in case anyone thinks an economic calamity is a fine time to have smoke blown up your ass.

Actually, never mind.

Joel said...

"Who needs an ATM when you've got a .45?"

Have you bought ammo lately? It's frickin' expensive!

Internet Solutions said...

They should continue to work...probably dispense some extra goodies too, coffee or chocolate maybe... Soon enough what comes outta them will be irrelevant but im sure they will continue to work.

King cash said...

Yup. Having a little cash squirrelled away is a good idea. Small denomination bills.

I was pulling another 2K in cash from my bank Sat AM. It took them forever to round up 1K in $10s and another 1K in $20s. Imagine how bad it would be if a lot of folks wanted their cash?

King cash said...

Yup. Having a little cash squirrelled away is a good idea. Small denomination bills.

I was pulling another 2K in cash from my bank Sat AM. It took them forever to round up 1K in $10s and another 1K in $20s. Imagine how bad it would be if a lot of folks wanted their cash?

Anonymous said...




Anonymous said...

ratman said...
There's nothing more selfish than the DemoRats taxing hard working Americans to buy votes with welfare programs for flippers, lenders and generations of lazy welfare queens.

August 11, 2007 3:27 PM
================================== in the midwest it is all Repigiecans taxing workers to provide tax relief for the wealthy.