Run on Banks? Scary!!!

azzaleaNovember 18, 2012

DD came to visit yesterday (Sat. morning). She was a littled concerned (then we were, too) when she told us that she went to a farm market a few towns from where she lives and EVERY bank she passed in that town had a LONG line outside--people in lawn chairs, lines wrapped around the building. And they were different banks, not branches of the same one.

How creepy would that be to see?

We were pretty sure it wasn't a traditional run, but puzzled. Finally, I was able to find out that that town has some sort of town-sponsored promotion, where, if you buy a certain amount of their 'town cash' (like gift certificates) they give you a significant extra amount of it. They earmark something like $175,000 for this venture!!! the town cash is sold at the banks in town, of course. Last year, they sold out in an hour! So I guess that's a pretty good reason to be sitting in a line, at the bank, in your lawn chair, early Saturday morning.

Whew!! So glad it was something nice, not naughty!

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RuthieG__TX

The stock market doesn't like Obama and is already making it's position known so the financial issues are mounting up...glad to hear though that it was just a promotion.

    Bookmark   November 18, 2012 at 4:28PM
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kittiemom

A promotion sounds like a good thing. Glad it was a "good" reason. My retirement account has definitely noticed the downturn in the market over the last couple of weeks.

    Bookmark   November 18, 2012 at 6:50PM
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cynic

That would be a strange sight to see. I know people have some strange shopping habits but sitting outside the bank like that would make me wonder if I was in Mayberry!

I'm curious, if the stock market dislikes Obama and administration so much, why has it doubled since he took office? Considering the recovery from the near-crash from the previous years, the market looks very positive to the unbiased eye. I know my retirement account looks a lot better under 12,500+ stock market than it did under the 6000 left before. Finally recovering from 8 years of devastation.

    Bookmark   November 19, 2012 at 2:17AM
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azzalea

Cynic--I don't follow the market as a whole, but I personally can say that my SEP account has lost over 10% of it's value since the election. DH's stock (it runs in the $30/share range usually) has gone down about $3-4 per share. Perhaps overall, the market is holding it's own, but our pockets are definitely a bit lighter than they were before the election. Now mind you, that can be partly affected by Sandy, I suppose. And we're not overly worried, in both cases we didn't pay for those gambles--DH's stock was given to him when the company lost a lawsuit, my SEP was bought with money that would otherwise have been paid in taxes on a windfall. So they're both 'free money' and we don't worry too much about the ups and downs.

    Bookmark   November 19, 2012 at 8:12AM
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dedtired

My township also has those local spending "dollars", but they are sold at the township building. I think the purpose is to promote shopping locally. They are only good at local participating shops. Most of the shops joined in and there were great bargains to be had. Yes, seeing lines outside of a bank would pique my curiosity.

From what I have read, the latest dip in the stock market is being caused by how quickly the fiscal cliff issue is resolved, or whether it gets resolved at all. The market is doing is its usual up and down behavior.

    Bookmark   November 19, 2012 at 9:11AM
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chisue

We tend to only remember what's happening at the moment. I am grateful to have been rescued from a Depression. I see the US economy slowly improving after the fiasco of cronyism and under-regulation before 2008. Slow is good; too fast and we have inflation.

IMO there are people 'selling off' (stocks, bonds, houses, you-name-it) in anticipation of higher tax rates in the coming years. Several homes in our neighborhood have been on the market since 2011; I'm guessing that the owners believe the $5M threshold will soon revert to $1M. Captial gains taxes will go up; why not liquidate some big profits now -- and buy back next year?

Up, down, up, down. Why didn't I become a trader so that I could earn a percentage with every shift! lol

    Bookmark   November 19, 2012 at 10:04AM
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dedtired

And I thought there was a run on the grocery store of people stocking up on Hostess Twinkies, Ding Dongs, etc?

    Bookmark   November 19, 2012 at 2:47PM
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bee0hio

Whoops! Dow up over 200 points today. I guess the stock market realized that Pres. Obama was out of country today & decided to sneak in a bit of a run up. Amazing how that works!! LOL!!

    Bookmark   November 19, 2012 at 11:33PM
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