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29 September 2008 @ 11:20 pm
Soooo... all of this talk of the economy and finance has me rather scared, particularly because I loathed economics and because I just don't understand a lot of it. My mind just doesn't work that way.

But I was talking with someone earlier, and I asked her a question. I'm going to ask you all the same question, just to see if I get the same answer from more than one person (though I trust her opinion very much).

So, the question is:

Should I be paranoid enough to take my (admittedly not that much, roughly $1000) money out of my checking account and tuck it under the proverbial mattress until this passes over?

I'd really appreciate your input. Thanks.
Keladry Lupin: Light Bulb Housekeladry_lupin on September 30th, 2008 04:30 am (UTC)
You have that much? I'm impressed.

My gut says it depends on the bank, but even WaMu got bailed out last week, and it was business as usual the next day, so your money is safe in any FDIC-insured institution.
Gelseygelsey on September 30th, 2008 04:36 am (UTC)
As pitiful as my paycheck is, my expenses are even less because I'm living at home. I pay rent to my parents ($120/month) and my gas (which, if I go no where else, is about a quarter of a tank a week), and buy a few extras every now and then.

It helps that I got my EVE check from the spring batch after I moved home, and that was $750.
dickgloucesterdickgloucester on September 30th, 2008 08:08 am (UTC)
Off the subject - but what is this EVE thing you keep talking about?
Gelseygelsey on September 30th, 2008 07:59 pm (UTC)
EVE Online is a massive multi-player online role-playing game. I have had two contracts with them now as a freelance content writer.
vanityfair00vanityfair00 on September 30th, 2008 08:09 am (UTC)
NO! As long as it is in a FDIC insured bank you should leave it where it is. Better yet, move all or part of it to a savings account where it will make some interest.
Gelseygelsey on September 30th, 2008 08:07 pm (UTC)
I was thinking of opening a savings account with half of it. Might as well tuck it somewhere where it might earn a couple of dollars.

firefly_124firefly124 on September 30th, 2008 10:30 am (UTC)
If it's an FDIC-insured account, probably not. That's about the extent of my economic sense, but .. yeah.

Here's the other thing - one of the articles I just read referred to yesterday's drop as the worst since the one in 1987. I remember that one. I remember doom and gloom and predictions of rain of frogs. And yes, things were screwed up, but it was nothing like 1929. In part because of inventions like the FDIC. The late 80s and early 90s weren't easy. I got laid off twice. But I also found jobs fairly quickly. So with that as a point of comparison, I'm a bit less panicked than I might otherwise be.
Gelseygelsey on September 30th, 2008 08:21 pm (UTC)
Sigh. I picked the worst possible time to graduate into, it seems.

It took a lot to find the job I have, and it sucks. Not even a "proper" job. But whatever *sighs*
annietalbot: Zorroannietalbot on September 30th, 2008 11:11 am (UTC)
Make sure the bank is FDIC-insured. You'll be fine.

However, at this point - don't make investments in the market.

The financial system will recover. I'm not so sure about my (comparatively conservative) 401-k.
Gelseygelsey on September 30th, 2008 08:23 pm (UTC)
I think it is. US Bank...

Sigh. I'm sure it will recover, but people will still suffer because of it :(
droxydroxy on September 30th, 2008 01:47 pm (UTC)
no, its insured.
Gelseygelsey on September 30th, 2008 08:24 pm (UTC)
Okay, thanks :D
redvelvetcanopy: Flagredvelvetcanopy on September 30th, 2008 03:02 pm (UTC)
All deposits up to $100,000 are insured by FDIC, so you're good. When you hit that number, you might try the mattress. ;D

Oh, and Obama wants to raise that minimum to $250,000, so shoot for that next.

redvelvetcanopy: Holy Fuck!redvelvetcanopy on September 30th, 2008 03:02 pm (UTC)
Oh, I guess I should have read the comments first! Yeah, what everyone else said!
Gelseygelsey on September 30th, 2008 08:24 pm (UTC)
*hugs* Thanks!
Empress Apricot: smoking killskvistis on September 30th, 2008 04:05 pm (UTC)
Usually banks will not be allowed to fail (and if they fail it's actually because people have gotten paranoid and taken out too much money). I'm not sure of how it is in the US but most countries also have a guaranteed amount that you will get back from the state if your bank fails.
And in worst case scenario the economy really goes to hell you could get biiig inflation and your 1000 dollars would become worthless, whereas if you have them in a bank of some sort you will get compensated by interest.
So it's probably better to keep the money where it is..

Gelseygelsey on September 30th, 2008 08:25 pm (UTC)
Thanks! :D