Clarification And Fiscal Advice From Javahaaa

I want to thank Javahaaa for taking the time to explain some CD’s, FDIC info and how to get the best rates for your account. I’m not a financial advisor, just a nutty psychic astrologer/writer who gets premonitions about all kinds of things not just the stock market, so I really appreciate Javahaaa taking the time to explain this for my readers. I certainly wouldn’t be qualified to do it!

Javahaaa is a banker so please read the advice so kindly offered:

javahaaa

Denise, since many of your readers seem fearful about their banks and CDs , being in banking I want to set the record straight for them. Every CD you get at a local bank is FDIC insured. You do not have to worry about losing the money if the bank “goes under” or, more likely, is bought out by someone else. Period. This has nothing to do with astrology.

The only people who have to worry the bank’s solidity and losing $ are those who own stocks or bonds of the bank. Even all the CDs and checking/savings deposits at IndyMac were safe. If the bank does “fail” and is taken over by the government, you may have to wait a short while before the $ is returned, but you will not lose it, including the interest accrued to that point. If it is, more likely, bought out by another bank, your $ is at the “new” bank the next day (CDs still subject to same holding period they first were).

Now, whether or not the FDIC has enough funding to meet its obligations, should lots of banks “fail” at once, is a separate story – and _that’s_ what you’re readers ought to ask about, not any individual bank.

Anyone who wants to keep their nest egg in CDs should shop around for the best rate – and the “best rate” is not just the %, but its relation to the maturity of it…. i.e., a 3.5% for 9 months is better than a 4% for 5 years….ask your local bank branch manager (or other experienced banker there) to help you figure out the “best bargain” at their bank, and compare that to other banks (most are more than happy to help you). You can also shop online: bankrate.com is a great site for the public. Then, _put the maturity date on your calendar _, and when the maturity date is coming near, shop around the same way. Usually, if you just let it roll over at the same bank automatically, you will _not_ get as high a rate as you will by shopping around. 

Banks run “promotional” rates to get your money in (often losing money themselves on the transaction, by giving you a higher % than they can get with their own $), and depend on most people being lazy and letting the $ roll automatically to a new, lower % CD once the promotional one comes due.

I hope this helps. Again, stock and bondholders should worry about the long-term solidity of the bank (or any company they invest in), but not people with their savings/CDs there. There are too many other things in day-to-day life to worry about – like spending less than you earn and saving enough (for the near future, and for retirement) to begin with.

Considering the fiscal condition of Medicare (which, at 3X the size of Social Security, is the federal program in the most trouble), and medical cost in general, saving for old age should be priority #1 for most people. They’re going to need a lot more $ than most think.

Answering Readers’ Questions…

 

More questions, more answers, the first from KRG:

KRG

Hi : Very interesting

On the prediction that India will hit Pak sites, I wonder whether this could happen thru US, becos it seems more likely that Obama will use his power to persuade Pak to let US take on the training camps etc in Pak. Don’t see India doing this unless we continue to get hit like 26/11. May be you could run a chart for US vis-a-vis Pak and see how it looks…

Hi KRG,

I think you are right in the sense that the US will try to hit the camps at some point in the future, especially with the recent news about an increase in the chances of a bio-terrorist attack. However, it looked like India was still very vulnerable and that this Pakistani terrorist group wanted to push India to respond to Pakistan. The last post I did detailed all of this.

Truthseeker

I woke up with the feeling that the credit crisis wasnt the cause of the market crash at the end of Dec/ Jan

Hi Truthseeker,

I’m sure you’re right. It’s turning out to be the information about the economy, joblessness, and eventually as Pluto crosses the 1st house of the Dow, and squares many other important planets at the critical cardinal 01 degree, (many western nations have a planet at this critical degree as well) we’re going to see some very ugly, criminal and shady stuff uncovered about how companies have been operating which will further freak out investors. Of course the news coming out about the seriousness of this crisis, joblessness and personal spending freezes we are all in will contribute to this coming Tsunami.

We’ve been at the point where we noticed the water receding back from the shore, and it looks really weird, but we couldn’t figure out what was happening or why. We are now at the point where the water is starting to hit the shoreline.

northernlights2008

Any thoughts on the two unresolved Senate races in Minnesota and Georgia? I think you predicted the Senate would get close to 60 seats a few weeks back. I wonder what the cards say closer to the evantual realities. Thanks!

Hi Northernlights,

It seems that I’m too late to predict Georgia. It looks like Republican Chamblis won. I really feel Franken should win Minnesota, if he doesn’t I think there was funny business going on. So I guess it will be 58 or 59, but its close enough. The Republicans are so fractured right now the next couple of  years will make it worse for them. I don’t think that number will stand long.

I do feel Obama will have the 60 needed, if not this go round, then next. The cards indicated it would happen. As I’ve said before about the cards, they are always right, but their timing isn’t always accurate.

Iris

Another question. Some of Obama’s supporters are up in arms about the people he is choosing to work in his Administration. They feel that they have been betrayed. Will the Disgruntled Dems. get over it in time or will they hold a grudge for the next 4 years?

Thanks! 

Hi  Iris,

I have noticed this very thing, and it’s annoying. The poor guy hasn’t even taken office yet. He can always fire people if they don’t work out! I wish they would let him get out of the gate before they tried breaking his legs. This is the very thing that is lame about Democrats, and the reason they are perceived as weak. And why it has been so easy to split the party, divide and conquer, a technique used efficiently by the Republicans who had the binding force of greed to keep them together as one giant jelly fish stuck to the butt of our country.

Democrats are often too idealistic, and not practical enough. They expect miracles immediately, and are too easily disappointed by reality because the binding force that makes people Democrats is a variety of things. There is no one glue keeping the party together except for idealism, so its a double edged sort of thing. It’s why Obama won. But also why people from his own side are going to pick on him like he’s the fat kid on a baseball diamond. It’s annoying.

Obama is putting together an entire administration. Just because he’s carrying some people over from the Bush admit-nothing-stration doesn’t mean they will ultimately stay, and there is some need for consistency and experience. If company A bought company B, they’d replace almost everyone, but just for efficiancy sake, and the sake of time, some employees from company A would transition to company B.

I think everyone getting their panties all up in a bunch before Obama even has possession of the white house is ridiculous. And frankly, the dude has 60 odd days to pick everyone on his team, move his family, and get a meeting of the minds together to basically run the free world.

So I say to those spastic hypercritical Democrats and lefties, cut him some slack! Jeez! There’s a lot to worry about right now, and I’m sure Obama will cull through people over time. Give the guy a chance. God, knows we gave George W. Idiot a new chance every day which he spent screwing something else up, and there was very little fuss made about any of his messes. But he had the web of greed there to catch him at all times where Obama has a sack full of ideologies to try and placate.

All I ask is 6 months to let the Obama administration get going before the traditional Democratic backstabbing and infighting. We are in a global state of emergency. Which will require us to learn to be more practical, and pragmatic instead of dreaming up ways in which we wish our politicians were more delightful. 

So in answer to your question. Unfortunately, I’m sure we will see the traditional Democratic hazing, but lets all commit to do our part not to participate in it.  There’s enough to fix that Obama shouldn’t have to worry about pandering to everyone, too.

grace43

Will Arnold Schwartzenegger be joining Obama’s cabniet? I thought when Obama said a top Republican would be on his cabniet, it would be Arnie. Now he’s picked Gates to stay on as Sec. of Defense. Since some very conservative Christians are in top level positions in the military, this seems to be a wise move aimed at keeping them calm. What’s up for the Governator after his term runs out?

Here’s his birth information: 30 July 1947, Thal, Styria, Austria (Taken from his bio on Internet Movie Database)
Birth Time: 04:10 (04:10 AM) MEDT(-1:00) (taken from Lois Rodden’s AstroDatabankhttp://www.astrodatabank.com/nm/SchwarzeneggerArnold.htm )

Thanks in advance!

PS

I sure hope he will be. After four years of having to look at Bush and Cheney, this lady would appreciate someone up there easier on the eyes. LOL

Hi Grace,

I just don’t see Schwartzenegger in Obama’s cabinet. He’s really done a bad job here in California. We’ve had budget problems, and the unions are talking about throwing him out of office. He’s a big oaf. Sorry to say. I’m sure his wife would make a better governor then him. He should have stuck to his acting career. Here’s his chart from the source you gave:

In 2010 he’s going to have transiting Pluto going over his Moon in the 6th house. His moon rules his chart, it’s in Capricorn/career and in the 6th that’s your job.  And it will be making an applying inconjunction to his Sun. So I’d say he’ll have some trouble in the career department. His wife should take extra precautions for her health at that time, too. As the moon in the 6th could be his wife Maria having some sort of health problem that could be fatal if not caught early.  Or if his mother if she is still alive could have a health crisis. So the women in his life will have to be diligent with their health over approximately the next 5 years.

He may very well get recalled here in California in a special election at that time (November 2010). He himself was put into office on a trumped up recall election, ousting our Democratic Governor Gray Davis. It was pretty lame. Karma’s a b*tch. So looks like he’ll be getting it back right about then. Or at least the fire will be roaring in that direction by then. I hope for him, and his family’s sake it’s just his career that has trouble, and not the women in his life.

Bedtime! More questions and answers tomorrow…

Best wishes to all of you!

Denise