October 20, 2008
A chunk at a time, (sometimes literally), the material possessions in my life are being reduced, digitized and eliminated, or picked over. I found myself choosing NOT to sign up for free samples just because they were free, a holdover habit from my uber-Fatwalleting days, knowing that I have a packet of said samples that have yet to be used. I’m passing up Walgreens FAR items that I won’t immediately use, or won’t be able to find a home for. CVS ExtraBucks items are carefully considered and not purchased solely for the sake of generating EBucks. Not that I ever really got into that last, but was gearing up to. There’s very judicious stockpiling of essentials only.
I like this trend, and that the only remaining accumulation is in my savings accounts. My fellow LA-area bloggers, Well-Heeled and Stacking Pennies, are doing remarkably well with their emergency/Freedom Funds and asked how much would make you feel safe or comfortable?
I feel a bit like Chicken Little when I think “just add a few more months’ worth to the e-fund,” but then I read comments like this one on Boston Gal’s post, Keep debt low and cash high:
Puddle Jump Photo said:
My husband has been laid off twice in the past 18 months and all of emergency money is gone…so right now…it’s just trying to stay afloat!
and I remember that my own family’s troubles over the last seven or eight years, for numerous reasons, and it suddenly doesn’t seem unreasonable to want just a few thousand more banked away.
That’s not to say that I’m entirely fatalistic, I certainly can’t be with the progress made over the last few years. I’m just feeling more and more cautious and less willing to take risks with my money or my career. That’s probably not the worst thing right now.
October 16, 2008
I’ve avoided blogging about the financial landscape and various unfoldings of fiscal policy for the past few weeks, not because of a need to play ostrich as in the case of my retirement accounts, but because everyone else has been doing it, every single day. What had I but personal outrage to add to the mess? What had I but negativity? And as I’m trying to avoid dwelling overmuch on the bleaker side of affairs to the point of creating paralysis, well, not adding my voice to the cacophony seemed prudent.
For the most part, it’s been helpful. I’ve managed to, slowly, stabilize certain crucial aspects of my (financial) life even as other elements are becoming less and less comprehensible. I won’t get into the latter, but will say there’s an overwhelming desire to escape. Mindfully paying less attention to the frenzied media has enabled me to get some work done.
It’s not that I’ve ignored the news, or the bloggers who are blogging about the ongoing situation, though, which means a new spark of exasperation flared this morning when I read this headline from the LA Times:
Because the first stimulus package really did wonders for the economy. Sure, the author acknowledges that “The battle could be even tougher than the one that played out last month over the $700-billion rescue plan for the financial system.” The fact remains, the first stimulus package passed, the bailout rescue plan passed, the government quietly bailed out the automakers somewhere amidst the bailout furor, the list of fear-motivated “solutions” goes on. And now we have another one.
As JLP asked this morning, is a credit-free Christmas such a horrid concept? More macroeconomically, is desperately trying to stave off a period of correction and downturn worth all the time, money and desperate measures we’re taking? It’s not that I don’t feel the effects of a softening economy, it’s not that I lack empathy or sympathy or any other -athy (other than apathy, I don’t feel that). I’m just concerned that the flurry of perhaps poorly conceived reactions, the flailing of our collective government, business leaders and ivory tower economists, is creating a bigger monster. I’m just wishing for a long-term solution Christmas, more than anything, solutions that are well-thought-out and aren’t short term fixes that don’t actually help.
And now I’m worried again.
September 26, 2008
If I were big money and already had up to my FDIC limit in Chase banks, I would be a little concerned because I’d have to find another home for my ex-Wamu money. But the grace period for separate deposit coverage for each bank lasts six months, so that’s not too shabby.
The good news is that the deliberate takeover means that JP Morgan has assumed the responsibilities for Wamu’s deposits so we won’t be taxing the limited resources of the FDIC reserve fund. I think it’s sad that everyone keeps referring to the fact that no one has lost their insured deposits since the FDIC was formed, and ignoring the fact that the fund isn’t a bottomless pool.
In the meantime, as a new Chase bank account holder, I can expect the following:
http://www.chase.com/welcomewamu/
What’s different?
* Your deposits at WaMu are now backed by the financial strength of Chase in addition to continuing to be insured by the FDIC.
* If you bank at both WaMu and Chase, your deposits continue to be insured separately today just as they were yesterday, and generally will be for another six months. At that time, your deposits will be insured by the FDIC for up to $100,000 per depositor (with an additional $250,000 for self-directed retirement accounts), and will continue to be backed by the strength and security of JPMorgan Chase.
* Learn more about the size and strength of our company.
What stays the same?
Continue to bank just as you usually do:
* same account numbers,
* same Washington Mutual name on your account,
* same checks, debit cards, credit cards, deposit slips,
* same online banking website and passwords,
* same branches & ATMs,
* same familiar bankers, and
* same great service!
What will change?
Soon
* You’ll be able to use over 9,300 Chase ATMs fee-free – jointly, that’s 14,000 ATMs for your banking convenience!
In the future
* You’ll begin to see the Chase name on your statements, online, and on your credit cards as they reissue.
* Your branch will be re-named Chase and you’ll be re-issued new debit cards with the Chase name. Until then, bank as you do today.
* As our systems merge, you’ll be able to use any of the Chase branches nationwide. This won’t take place this year, and we’ll let you know well in advance of any changes.
I get to keep my checks! And my money.
September 25, 2008
Hm. This is how unpanicked I am about the whole thing: my first thought was “Aw man! Do I have to get new checks? I like my old checks!” It’s not that I’m entirely blind to the whole picture, it’s just that in this particular case, there’s not much cause for panic. We’ve known that Wamu was struggling for some time now, and this was a pretty organized dealie. And to be honest, I still don’t know the answer to my sole burning question.
I do know that since this was a government mandated seize and closure, the transition is expected to be seamless, per WSJ:
1. We’re fully covered by the FDIC.
2. We should expect business as usual tomorrow morning.
Pretty basic, thus far, since it’s considered breaking news, though as you can see in the WSJ article, it appears that the steps taken were fairly deliberate and not a surprise to the players involved.
It’ll be nice to find out what adjustments, if any, I’ll have to make to my account. I don’t like the idea of only having one B&M bank, so I’ve got my fingers crossed that nothing more than the ownership really changes.
