Are you more risk averse now?

[bsrsharma]

“average Joe seems to be oblivious..”

And will remain so. Some one said: It is Recession when your neighbor loses his job; It is Depression when you lose your job. Till unemployment crosses 5% it is good time. At 6% it is worrisome. At 7%, all hell breaks loose.

[bsrsharma]

“average Joe seems to be oblivious..”

And will remain so. Some one said: It is Recession when your neighbor loses his job; It is Depression when you lose your job. Till unemployment crosses 5% it is good time. At 6% it is worrisome. At 7%, all hell breaks loose.

[Bubblesitter]

I think that this credit crunch crisis is getting more water cooler talk. Most folks still don’t seem to grasp what is going on.

Please review every prospectus in your 401K/403B and taxable accounts. You may be suprised to find many “safe” bond funds of these have heavy holdings of MBS – Mortgage backed securities.

As a measure of how risk averse I am now, I have even shifted money out of Money Market Funds in my multiple 401K accounts. Although safer than bond funds, some of these MM funds are loaded with an unknown amount of potentially risky asset-backed securities and other “paper” that could be pulled down by the mortgage mess. I shifted all of these assets into Govt treasuries.

I have scrubbed and rescrubbed my entire portfolio to ensure minimal exposure to MBS and associated fallout. Are you folks doing similar things?

[Bubblesitter]

I think that this credit crunch crisis is getting more water cooler talk. Most folks still don’t seem to grasp what is going on.

Please review every prospectus in your 401K/403B and taxable accounts. You may be suprised to find many “safe” bond funds of these have heavy holdings of MBS – Mortgage backed securities.

As a measure of how risk averse I am now, I have even shifted money out of Money Market Funds in my multiple 401K accounts. Although safer than bond funds, some of these MM funds are loaded with an unknown amount of potentially risky asset-backed securities and other “paper” that could be pulled down by the mortgage mess. I shifted all of these assets into Govt treasuries.

I have scrubbed and rescrubbed my entire portfolio to ensure minimal exposure to MBS and associated fallout. Are you folks doing similar things?

[Bubblesitter]

I think that this credit crunch crisis is getting more water cooler talk. Most folks still don’t seem to grasp what is going on.

Please review every prospectus in your 401K/403B and taxable accounts. You may be suprised to find many “safe” bond funds of these have heavy holdings of MBS – Mortgage backed securities.

As a measure of how risk averse I am now, I have even shifted money out of Money Market Funds in my multiple 401K accounts. Although safer than bond funds, some of these MM funds are loaded with an unknown amount of potentially risky asset-backed securities and other “paper” that could be pulled down by the mortgage mess. I shifted all of these assets into Govt treasuries.

I have scrubbed and rescrubbed my entire portfolio to ensure minimal exposure to MBS and associated fallout. Are you folks doing similar things?

[NeetaT]

http://www.mlnbank.com/Services/premCDs.htm

[NeetaT]

http://www.mlnbank.com/Services/premCDs.htm

[NeetaT]

http://www.mlnbank.com/Services/premCDs.htm

[cashman]

Bubblesitter, interesting that you opened this thread on about the same day that the market topped, and the same day that Eric Jantzen at iTulip called a market top. You have obviously been doing your homework.

I am definitely more risk adverse today than even a month ago. I posted this link on another thread, but I’ll post it again here:
http://market-ticker.denninger.net/2007/08/weekend-speech-part-deux-come-to-jesus.html
I had a lot of cash in one particular internet bank, several times the FDIC limits. It’s four star rated by BankRate.com, and I had thought that the chances of it going bust are slim to zero. I have rethought that notion with the turmoil of the past month. Even if the bank doesn’t fold, there is a good chance that there will be “runs on the banks” out of people’s fear which could cause systemic risk. I feel it’s better to be prepared than not. Kinda like the saying “it’s better to have a gun and not need it than to need a gun and not have it.” So I’m transferring my cash to other banks and opening additional accounts to keep the amounts within insured limits. It’s a big hassle. I’m one of those people that likes to have things all in one place. But I’ve always believed that the successful people in this world are those that are willing to adapt to changing circumstances.

[cashman]

Bubblesitter, interesting that you opened this thread on about the same day that the market topped, and the same day that Eric Jantzen at iTulip called a market top. You have obviously been doing your homework.

I am definitely more risk adverse today than even a month ago. I posted this link on another thread, but I’ll post it again here:
http://market-ticker.denninger.net/2007/08/weekend-speech-part-deux-come-to-jesus.html
I had a lot of cash in one particular internet bank, several times the FDIC limits. It’s four star rated by BankRate.com, and I had thought that the chances of it going bust are slim to zero. I have rethought that notion with the turmoil of the past month. Even if the bank doesn’t fold, there is a good chance that there will be “runs on the banks” out of people’s fear which could cause systemic risk. I feel it’s better to be prepared than not. Kinda like the saying “it’s better to have a gun and not need it than to need a gun and not have it.” So I’m transferring my cash to other banks and opening additional accounts to keep the amounts within insured limits. It’s a big hassle. I’m one of those people that likes to have things all in one place. But I’ve always believed that the successful people in this world are those that are willing to adapt to changing circumstances.

[cashman]

Bubblesitter, interesting that you opened this thread on about the same day that the market topped, and the same day that Eric Jantzen at iTulip called a market top. You have obviously been doing your homework.

I am definitely more risk adverse today than even a month ago. I posted this link on another thread, but I’ll post it again here:
http://market-ticker.denninger.net/2007/08/weekend-speech-part-deux-come-to-jesus.html
I had a lot of cash in one particular internet bank, several times the FDIC limits. It’s four star rated by BankRate.com, and I had thought that the chances of it going bust are slim to zero. I have rethought that notion with the turmoil of the past month. Even if the bank doesn’t fold, there is a good chance that there will be “runs on the banks” out of people’s fear which could cause systemic risk. I feel it’s better to be prepared than not. Kinda like the saying “it’s better to have a gun and not need it than to need a gun and not have it.” So I’m transferring my cash to other banks and opening additional accounts to keep the amounts within insured limits. It’s a big hassle. I’m one of those people that likes to have things all in one place. But I’ve always believed that the successful people in this world are those that are willing to adapt to changing circumstances.

[HLS]

ARE YOU KIDDING ??? Millenium Bank Accounts are NOT FDIC insured.

I have been to St Vincent & the Grenadines. It’s a poor Caribbean Island nation with a small bit of tourism.

Countrywide Bank accounts ARE FDIC insured. I wouldn’t risk $100,000 in cash to MAYBE get a couple thousand dollars a year.

You are risking $100,000.00 to maybe get $2,000, MAYBE.

I see on their site they have a LOAN BACK program.If had a CD there, I would get 95% out and be safe. I don’t care what their past history is.

I’ll stick with Countrywide Bank or similar FDIC insured accts!

[HLS]

ARE YOU KIDDING ??? Millenium Bank Accounts are NOT FDIC insured.

I have been to St Vincent & the Grenadines. It’s a poor Caribbean Island nation with a small bit of tourism.

Countrywide Bank accounts ARE FDIC insured. I wouldn’t risk $100,000 in cash to MAYBE get a couple thousand dollars a year.

You are risking $100,000.00 to maybe get $2,000, MAYBE.

I see on their site they have a LOAN BACK program.If had a CD there, I would get 95% out and be safe. I don’t care what their past history is.

I’ll stick with Countrywide Bank or similar FDIC insured accts!

[HLS]

ARE YOU KIDDING ??? Millenium Bank Accounts are NOT FDIC insured.

I have been to St Vincent & the Grenadines. It’s a poor Caribbean Island nation with a small bit of tourism.

Countrywide Bank accounts ARE FDIC insured. I wouldn’t risk $100,000 in cash to MAYBE get a couple thousand dollars a year.

You are risking $100,000.00 to maybe get $2,000, MAYBE.

I see on their site they have a LOAN BACK program.If had a CD there, I would get 95% out and be safe. I don’t care what their past history is.

I’ll stick with Countrywide Bank or similar FDIC insured accts!

[Bubblesitter]

This Millenium band sounds very high risk.

Hat tip to Davidt1…….

http://www.fatwallet.com/forums/arcmessageview.php?catid=52&threadid=667…

http://www.bankaholic.com/2006/millenium-bank-900-5-year-best-cd-rate/

If you have more than 100K and are concerned about your deposits, spread it among a number of banking institutions. I would feed much safer in CW bank than Millenium

As the old adage goes, if it sounds too good to be true, it probably is!. 7%+ return on a CD is too good to be true!

[Author]

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