Here's an interesting story about what's happened:

Bloomberg news

Washington Mutual Bank failed tonight--it's the largest bank failure in history, and it's one of the banks in which I have an account.

Fortunately, the FDIC seized the bank and immediately facillitated its sale to J.P. Morgan Chase, and apparently the entire transaction went off rather seamlessly. The bank will even be open for business tomorrow.

Because I already have accounts in Chase Bank, adding my Washington Mutual account totals to what I have in Chase will now put me over the FDIC limit in Chase. So now I have to hunt up still another bank to park some money in.

I'm relieved my money is all safe, and that the failure-->sale transaction went so smoothly, but this hopping from bank to bank I've been doing is really getting me rattled. I'm running out of banks around here whose stability I can trust.

Is anyone else going through this sort of thing?

There goes my bank! That's where my mortgage is held. Just marvelous.

I think all that means, Bruyere, is that Chase now has your mortgage. You just keep making your payments as usual, and on time. They have been reminding people to keep making their payments on time if one bank buys or takesover another.

I can't really complain too much. Because Washington Mutual was in trouble they were offering great CD rates in order to attract depositors. I have a CD for the next year at 5%--which is at least 3% more than Chase was offering for a year CD. So, as long as this transition went smoothly, I guess I came out ahead.

Chelseabelle, maybe you can contact Jaimie Dimon, and ask him if he'll consider selling to you some of the remaining assets of WaMu.

He has so many parts of different banks now, he may oblige.

Was a time, he was on the skids with Sandy Weill at Citi.

My how times change.

Since I have no money to speak of, the current economic crisis isn't affecting me much. I never wanted a lot a lot of money, and I'm basically a "consider the lilies of the field" kind of guy. As long as I have enough to get by, I'm happy. I think there are more important things to worry about.

Nice outlook, Daver!

Is a CD like a term deposit?
I've just started watching Suze Orman show lately - I should know theses things.

So far so good for us here. The Australian governments is making all the right noises along the lines that our banks are in a good position to handle the global crisis. Personally there has been no difference so far. We're always pretty careful with our money so hopfully if it does hit hard here then we should be okay.

Yes, a CD is a term deposit.

I'm a big fan of Suze Orman and watch her show often. She gives such good, sensible, financial guidance. If more people followed her advice, they'd be less in debt and have more in savings. Her books are quite good too and I've begun giving them as gifts. The book for younger adults was just perfect for my 25 year old nephew.

Have you noticed a big jump in prices where you are, Jill, particularly in food prices?

This is a little stale, since the AIG deal is already done, but the figures are interesting:

"I'm against the $85 BILLION bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a "We Deserve It" dividend.

To make the math simple, let's assume there are 200,000,000 bona fide U.S. citizens, aged 18+.

Our population is about 301 million counting every man, woman , and child.

So, 200,000,000 might be a fair stab at adults 18 and up.

Now, divide 200 million, 18+ adults into $85 billion - that equals $425,000.00 each!

Yes, my plan is to give that $425,000 to every adult as a "We Deserve It" dividend.

Of course, it would NOT be tax free. So, let's assume a tax rate of 30%. Everyone would pay $127,500.00 in taxes.

That sends $25.5 billion right back to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife would have $595,000.00!

What would you do with $297,500.00 to $595,000.00?

· Pay off your mortgage – housing crisis solved
· Repay college loans – what a great boost to new grads
· Put away money for college – it'll really be there
· Save in a bank – create money to loan to entrepreneurs
· Buy a new car – create jobs
· Invest in the market – capital drives growth
· Pay for your parent's medical insurance – health care improves
· Enable Deadbeat Parents to come clean – or else

Remember this is for every adult U.S. citizen, 18 and older (including the folks who lost their jobs at Lehmann Brothers and every other company that is cutting back) and of course, for those serving in our Armed Forces.

If we're going to do an $85 billion bailout, let's bail out every adult U.S. citizen!!

As for AIG – liquidate it.

· Sell off its parts.
· Let American General go back to being American General.
· Sell off the real estate.
· Let the private sector bargain hunters cut it up and clean it up.
(fire the executives and insist that there is NO severance packages, but fines attached to their holdings)

We deserve the money and AIG doesn't. Sure it's a crazy idea, but can you imagine the coast-to-coast blockparty?!

How do you spell Economic Boom? W-e D-e-s-e-r-v-e I-t d-i-v-i-d-e-n-d!

I trust my fellow adult Americans to know how to use the $85 Billion "We Deserve It" dividend more than I do the geniuses at AIG or in Washington, D.C..

And remember, The plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam."

A couple of problems that I see are the host of folks who would spend gobs on illegal drugs and such, and on products from foreign countries, but what if...

I'm interested to hear that mainly as they didn't throw money away with massive mortgage offers, on mainland Europe their economies are barely affected. I'd like to hear from people there to see if it really was all a self imposed crisis, and only the countries who joined in the big giveaway are in any trouble. Of course any problems were made far worse by the increase in the oil price which affects everyone adversely except the few countries that produce a lot of it. I wouldn't be the least bit surprised if many investors connected to the property market switched to oil when they realised it was in difficulties, and as a result pushed the oil price through the roof when they all bought at once. They profited and brought half the world to the edge of a recession for their efforts. It certainly happened to gold, which doesn't affect the economy, as although we dropped the gold standard when currency becomes devalued that is where people find the real value backed by actual assets.

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... on mainland Europe their economies are barely affected

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However, many Continental banks have invested in securitized mortgages, so they are also affected.

It used to be said that in France families got rich by saving and that the process often took three generations, while in Britain people got rich (often quickly) by borrowing. Obviously, such adages are over-simplications, but there is or was a grain of truth in this one.

In most Continental countries one has to pay 25-30+% of the price of a property in order to get a mortgage. There is undoubtedly a downside to having a hyper-sophisticated financial services sector, as in the U.K.

Britain has become an owner-occupiers' republic where much of the population has a vested interest in inflation.

Now it appears that the Bradford & Bingley Bank in the U.K. is about to fail, due to the downturn in the housing property market.

http://business.timesonline.co.uk/tol/bu...icle4841032.ece

And Dutch and Belgian officials are scrambling to agree a plan aimed at keeping troubled banking and insurance group Fortis afloat after a dramatic drop in it's share price last week.

http://www.reuters.com/article/newsOne/idUSTRE48Q2X320080928

The Bradford and Bingley is a classic example of 'deregulation' and its possible results. A couple of years ago a radio pundit said they and others would fall as so many organised gangs got mortgages from them to fund their crime. This was strongly denied at the time but when there was too much bad debt to conceal they are now the first ever to admit it was fake loans that brought them down as well as the usual reckless ones. By not checking the client's details like they all used to any old crook could make up whatever they wanted, get hundreds of thousands and then disappear. Once they had the formula it was like shelling peas.
And who's going to pay for their mistakes now I wonder? (and I don't think it'll be the French either Bloomsby!).

Here is my source

I think that you will find mainland Europe has a different ethos to consumerism that we in the UK and the USA.
As Bloosmby said, mortgages are difficult to come by and you need a hefty deposit - none of those ridiculous 100% or more loans.
France has nothing like the credit card debt, due to far stricter regulation of what you can afford and what is permitted by the banks.
Germany, whilst officially in recession, have a tradition of sharing a house with several generations - just build on, and up. Saving is part of the norm for a family (as is caring for their old). Some of their problems are caused by people saving too much and not spending... bit of a rock and a hardplace moment.
Why would you expect the French to bail us out Sat? They are cleaning up by buying our energy and water companies and exorting their pound of flesh. Seems there is more than one way to get back at the old enemy. Who needs wars!

It is reported that the House of Representatives has rejected the $700 billion rescue package. What next? Corporate and individual bankruptcies galore and the biggest slump since that early 1930s?

No, they go back and hammer out the details. I'm glad it didn't pass the way it was written because it was only a temporary fix and would have caused more problems in the coming months.

The French bail out was hardly serious Sherry- that was just the point. They should be used as an example to us all how to manage an economy responsibly. The fact that they also cap energy prices (and still have a nationalised power industry unlike us), so when they put up our prices 22% they only put them up 2% at home. So in a way the French could help us a lot if we learnt from them.

Only on a few day's research can see that bailing out banks will ultimately help the rich and the very poor, everyone else will pay for it. If left to the market the rich will be relatively cut down to size (I expect they know how to save though and won't starve regardless) and by restricting both mortgages and allowing houses to drop to a reasonable price will help many buyers and prevent all but those with the income to buy them and pay it back. And the money hasn't disappeared. It has gone to gangsters, people who gambled on things going downhill, clever landlords and many others who invested in real assets like gold and silver which tripled the prices to more than they've been in living memory.
Many people grew rich even in the 20s. You may need more brains to survive the hard times but we aren't heading for world poverty whatever the media may like to imply. So far if you haven't borrowed anything you may well end up profiting from all the hoohah. The real threat to our economy is oil and food prices plus overpopulation which drive them up. That's why their very happy to look at everything else and take our eyes of the real ball.

People sometimes wonder how I can pick relevant factors in politics, all I can say is in 1975 I said the Common Market was set to try and take over all national power and most people (not my lawyer parents) laughed. In 1982 I studied Common Market law, and now both the law has been left behind and rewritten, and 82% of British law originates there, including criminal laws which they promised never to touch. If they get the constitution through it'll be closer to 100%. Not directly relevant but is a bit of a record to build on when it comes to seeing the parts others avoid mentioning.

HISTORIC TIMES?

We graduate morons. I will keep hearing the same catch words that don't solve a thing.

It's simple...1980. Bush debates Reagan...calls his economic plan borrowed from Milton Friendman..."Voodoo Economics".

2008, Bush's son is recipient of the flip side of Reagonomics, or "Voodoo Economics", although papa Bush never mentions this.

Replay every single G.W.Bush State of the Union Address, and it's always..."Economy is strong". Now his tune suddenly changed.

And the parrot seems to be none other than McCain, who used to say..."The Economy has strong underpinnings"...until recently.

And we, the rest of the 99% crowd, are expected to believe.

Every economic plan eventually crumbles.

To save it now requires fast mobility in promoting smaller type corporations with products needed by all....going green is part of it. Forget the old names that have had their glory days...it's over for them.

Any candidates want to adopt my economic plan?

Hah? Guess not. Let the pieces fall where they may.

Interesting- Gordon Brown has parroted the same 'Economy is basically strong, not like the 80s (70's, 20's, whenever sounded worse than now)' as well till a few weeks ago. We still have the odd PR and minister claiming there is such low unemployment, interest rates (the partial cause of the problem in the first place) and general wealth this will not affect us.
Now I bet they all knew about this months or more before we did, so that sort of made them present claims that were out of step with reality. Like we didn't know they did that till now...

I am so glad that the bill that passed in the Senate last night includes an increase in FDIC insurance from $100,000 to $250,000 for each depositor's bank account.

Many retirees, or those nearing retirement, like me, are keeping a good chunk of their funds in cash right now because other investment vehicles are too risky at the moment. Higher FDIC limits means you don't have to maintain so many different accounts at multiple banks, and that will make my financial dealings a little easier.

The higher limits may also help to save some smaller banks, since depositors may be less likely to opt for the larger commercial banks simply because they see those as being safer. And small businesses are helped by the higher limits as well, since they will be able to store more cash safely in banks.

The added protection will translate into higher banking fees for everyone, since the FDIC will also raise the amount they charge the banks for the insurance. And, it still remains to be seen where the FDIC will get the funds to back up all those deposits. But, all in all, I think this move will help both depositors and the banks.

Now, we have to see if the bill passes in the House.

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I am so glad that the bill that passed in the Senate last night includes an increase in FDIC insurance from $100,000 to $250,000 for each depositor's bank account.

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Absolutely. I just hope that somehow those new FDIC ceilings won't have to stand the test of a real disaster. But that possibility seems fainter and fainter, now that the 'new' bailout bill is filled with provisions for ambiguous projects like 'wool research' the NASCAR industry and saving some toy arrow factory in the midwest...well.

We're pretty much rearranging chairs on the Titanic at this point.

Fortunately, the only plastic I use these days is my bankcard -all my other cards were paid off year before last, as was my car. My only real debt is the mortgage, which is within my means to keep current on. I'm buying non perishables like beans and rice, flour and some canned goods to store for the winter and have been for a while now. I'm also buying extra basic spices like peppers and garlic and onion powder. I've been laughed at by various family and friends -but it's all good. If I'm wrong, nobody will be happier to admit it. If I'm right, then they may be inviting themselves over for red beans and rice. And they'll be welcomed to it.

Many analysts feel this winter could be a hard one- both in terms of weather and the economic climate and I will do what I can to ensure my family's health and well being. This morning, I read there is a growing wave of home safe purchases, which can only mean one thing: people are preparing in case they need to pull their money out of the bank. A run on the banks by the general population is one of the last things we need right now,[ even though there has been something of an 'insider's run' within the banking industry last week, and now many banks aren't giving each other credit].

I'm hoping the population in general can stay calm until we have more information.

So far any bank deposits in Jersey have not been guaranteed in the event of a bank collapse but it has been announced on the news this evening that we are to receive protection, our money is safe.

That's wonderful news Sue. Ours has been upped to $250,000 from $100,000. That should make a lot of retirees happy, and many people won't have to spread their funds about in different accounts.

This afternoon Bush signed into law the Bailout (also known in my house as the pork barrel) bill.