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Back because I'm scared

September 27th, 2008 at 04:13 pm

I feel like I need to huddle around the virtual campfire at Saving Advice again, safe from the cold, cruel world with some people who have their heads on straight. Smile

I'm trying not to be a Nervous Nellie, but all this upheaval in the economy is starting to get to me. It's not just what I'm hearing on the news--it's real life.

WAMU-we have our one credit card with them. Things should be business as usual, but it feels strange to have a 2nd credit card provider go belly up on me. (I had a NextBank card years ago.)

Wachovia-I have a brokerage account with them, DMom has two brokerage accounts plus she owns a pretty significant chunk of Wachovia stock which is already showing a loss. I'm hoping they don't do a WAMU and that she doesn't lose it all.

The housing market-My mother, at 91, has finally put her "extra" house up for sale, seemingly at the worst possible time in recent memory. There have only been two showings in about 3 weeks. If it goes on too many months, we may need to help her get it ready to rent out.

It's been a year, and DH still isn't working. In a lot of ways it's been a help, but we could sure use some extra money.

Especially since we are still paying $660 a month for his COBRA health insurance, which runs out in March. The prospects for me getting full-time at my present job don't look good, and the cost of an individual (non-COBRA) policy will be even higher.

Our emergency fund is below the $1000 minimum that I feel comfortable with, and I'm going to have to work hard to get it built up again. I'm unavoidably spending $200 a month on gas now (because of driving my mother), and our car insurance just went up $35 a month.

Somehow I'm going to have to get back to frugal ways, but I don't have time to fiddle around with Quicken like I used to.

Hope things are going a little more smoothly with everyone else.

12 Responses to “Back because I'm scared”

  1. creditcardfree Says:

    Glad to have you back. I sure hope things start looking up for you and your family. Think positive. Is the second house got good curb appeal. Some mums this time of year can make a nice addition. Keep the lawn trimmed. Are the house colors up to date? Best wishes...and ((hugs)).

  2. Maismom Says:

    I'm sure many people share the same anxiety. Hang in there. I hope your DH will find a job soon.

  3. paulettegoddard Says:

    This too shall pass. Can DH fiddle with Quicken while you work?

  4. gamecock43 Says:

    I'm scared to.

  5. homebody Says:

    I would watch the news about Wachovia and not wait too long.

  6. Apprentice Fun-Frugalist Says:

    My heart goes out to ye all across the pond.....

    It seems as if you are been led from one potential disaster to the next.... Terrorism, Iraq, Global Warming Armageddon, now Financial Ruin....

    It seems as if you all are been kept in a perpetual state of anxiety.... that can't be good for a person.

    My best wishes go out to you all !! :-)

  7. Aleta Says:

    Glad that you are back. I think a lot of us are a little scared right now. We're treading into unknown waters.

  8. Broken Arrow Says:

    I think being scared about what's going on right now is understandable. However, I think it will work out in the end, and if you or anyone has any specific questions, then I'm sure we'll all try to answer them the best we can. Then perhaps that will make you feel better as well....

  9. baselle Says:

    I'm apprehensive, but I'm keeping my eyes open and assessing risks. Good to hear from you - we don't hold it against you that you are back because you're scared.

    FYI: Holding Wachovia stock seems too risky for me right now.

  10. Broken Arrow Says:

    Holding Wachovia stock right now would be very risky indeed. Although I'm wary of it, I'm actually not above trading at this risk level. Still, WB is not something I'd want to bet my money on right now. Just too many question marks.

    However, banking with Wachovia should be fine. I don't foresee a big problem. I forgot to mention that chatters over merger is also a bit livelier than WaMu for example.

  11. baselle Says:

    BA & StressLess - if I'm reading this right, StressLess's Mom has some Wachovia stock.
    My take on Citigroup (C) talking with Wachovia (WB) is that C is not going to behave like a white knight. C will keep talking until WB is in the ground, then swoop in buy WBs assets for pennies on the dollar. If you are not in a position to lose this WB stock money completely, this is not a wait and see situation.

    I've seen this pattern with:
    JP Morgan buying Bear Stearns (sic)
    B of A buying Merrill Lynch (best resolution of the 4 - $.25 on the dollar)
    Barclays buying Lehman
    JP Morgan buying WaMu

    Barclays was chattering plenty with Lehman. Didn't help Lehman's price any. No chattering with Merrill Lynch. That deal was the best of the 4.

    Deposit and the brokerage accounts are different. I'm only talking about the stock shares here.

  12. Broken Arrow Says:

    Yeah, I'd say that's a very good possibility. They do that because they can. Such is the current economic climate we are in.

    What's more, Citigroup itself has its own large heap of sub-prime mess. So, even if they do buy Wachovia, combining these two risky companies just equals to an even bigger ball of risk....

    Basically, I agree here. I'm not trying to give anyone any false hopes about a possible recovery with Wachovia from a stock trading point of view. Trade-wise, you'd have to have massive risk tolerance. If you don't have that, by all means, feel free to dump the stock, even if it's at a loss.

    I think I may be accidentally sending out confusing signals because I am actually looking for an entry point.... Perhaps not necessarily with WB, but just financials in general. But I do have the risk tolerance for it, but what I do isn't what I'd recommend unless you also have the same level of risk tolerance. Even then, I don't think WB is a good stock to hold right now.

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