Berkeley CSUA MOTD:Entry 51076
Berkeley CSUA MOTD
2019/06/18 [General] UID:1000 Activity:popular

2008/9/6-9 [Finance/Banking] UID:51076 Activity:nil
9/6 (
        "Growth in the economy in this decade will be the slowest of any
        decade since the Great Depression, right in the middle of all this
        financial innovation" - Paul Volcker
        \_ Is volcker an idiot or respected?  i can't remember.
           \- ben stein: idiot. pvolker: respec
           \- bstein: idiot. pvolker: respec
2019/06/18 [General] UID:1000 Activity:popular

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2013/7/31-9/16 [Reference/RealEstate, Finance/Investment] UID:54720 Activity:nil
7[31    Suppose you have a few hundred thousand dollars in the bank earning
        minimum interest rate and you're not sure whether you're going to
        buy a house in 1-5 years. Should one put that money in a more
        risky place like Vanguard ETFs and index funds, given that the
        horizon is only 1-5 years?
        \_ I have a very similar problem, in that I have a bunch of cash
2013/5/13-7/3 [Finance/Banking] UID:54676 Activity:nil
5/13    Does FDIC ever matter? How likely is it that your deposit of
        over $250k going to be screwed over in a major US bank?
        \_ Was Washington Mutual a major bank?
        \_ Was Washington Mutual a major US bank?
        \_ Hahahahahahahahahahaha. Good one.
        \- As with nuclear weapons, this insurance produces much of its value
2013/3/9-4/16 [Finance/Banking] UID:54621 Activity:nil
3/9     In a 15/30 year loan, the amount of payment stays the same but
        the payment on interest decreases while the principal increases.
        Suppose I decide to pay off a huge chunk of principal, will
        the amount of interest I need to pay decrease drastically, or
        do banks still want to take out a huge chunk of interest rate?
        \_ You don't actually have separate "interest" and "principal"; you
2011/11/27-2012/1/10 [Finance/Banking] UID:54243 Activity:nil
11/27   Whoa, since when did FDIC coverage go up to $250,000? That's cool.
        So is this coverage per customer per bank, per account per bank,
        total per person, etc?
        \_ I believe that it is per customer per bank. Not 100% sure though.
           \_ Yes, and you can get even more with joint accounts, etc.:
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Paul Volcker said the US financial system, dependent upon securitization rather than traditional bank loans, is broken, and may contribute to the weakest expansion since the 1930s. This bright new system, this practice in the United States, this practice in the United Kingdom and elsewhere, has broken down,'' Volcker said today at a banking conference in Calgary. He urged changes in financial regulations, echoing calls among sitting officials and legislators. Volcker ran the Fed from 1979 to 1987, and engineered an increase in interest rates to 20 percent to quell inflation that exceeded 10 percent. US growth has averaged 23 percent so far this decade, down from 34 percent in the 1990s. The current growth rate is the weakest since at least the 1940s, when the government began compiling figures on quarterly gross domestic product. Job Losses Volcker's comments came after a government report today showed the US unemployment rate rose to a five-year high as the economy lost more jobs than forecast in August. The report underscored concerns that US consumer spending will weaken and push the American economy into a recession. Economists expect annualized rates of growth of 1 percent in the third quarter and 04 percent in the fourth quarter, according to the median estimate in a Bloomberg Survey in early August. Policy makers will continue to review'' the Fed's measures to ensure liquidity to determine if they are having their intended effects,'' Bernanke said. Changes are going to have to be made'' to the global financial system, Volcker said. Banks three decades ago accounted for about 60 percent of US credit; that later declined to about 30 percent as securitization -- where financial firms package assets into bonds and other instruments and sell them on to investors and other companies -- spread. Polite Way' Volcker said he agreed with descriptions of the current financial system as dysfunctional.