Getting Out of the Stock Market

A friend of mine from college told me recently that he sold all his stocks, has the money in cash, and is thinking of getting FDIC-backed Ally Bank CDs.

I cut out these headlines from today’s New York Times business pages.

9 Responses to Getting Out of the Stock Market

  1. Matt says:


    As long as there is no rule of law in the banking system and CORZINE is running free instead of being put in jail for the rest of his miserable existence, then having money in the bank is begging for it to be stolen.

  2. Anonymous says:

    Tell your friend to invest in gold and silver. He stands a chance of making some money. Or better yet buy a chunk of land and live a nice life in his own paradise. Better than giving some "financial expert" a shot at robbing him blind.

  3. Anonymous says:

    It's a House of Cards Lloyd, sometimes they stay standing longer than you'd think, this one is overdue…

  4. izzit says:

    Ummm… yeah I don't trust Wall St either but – Ally?!! "Ally Bank" is just a name that GMAC plucked out of a hat when it renamed itself after their 17 BILLION dollar bailout – remember that? GMAC did everything that the "Ally" ads say they've never done (at least, they haven't done it under THAT name – yet). This bank still hasn't paid back the Feds after last time:
    "As of January, 2012, TARP had about $12 billion invested in Ally… In March, 2012, Ally failed the Federal Reserve's so-called financial "stress test" for capital adequacy…. On May 15, 2012, the company put its ResCap subsidiary into Chapter 11 bankruptcy after it failed to make an interest payment of $20 million on unsecured debt. "
    With respect & concern for your friend, I think we're better off following your example of building our own houses and growing our own food. Diversify! (and for necessary banking, I got better interest rates from a credit union, personally)

  5. Anonymous says:

    Try a credit union for better short term (under a year rates) on CDs: FDIC backed and community based. Our CU rates are a quarter to half a percent higher for 3,6, and 9 month CDs.

  6. Sounds like a wise friend. With all the crazy stuff we're hearing about high frequency trading 'accidents' and interest rate rigging moving money into tangible assets you can hold yourself just sounds like a better idea.

    CDs still come with counter-party and inflation risk but there's also risk with stacking silver in your home too… so seems like a reasonable diversification option.

  7. Carlos says:

    He should put some of it in silver and gold but no more than 1 years worth of necessities. If he hasn't paid off his mortgage he should do so, sell his city house and then purchase some acreage out away from any major cities. A bunch of the lower middle class retired Americans have headed for the Lower Rio Grande Valley of Texas and points farther south like Belize and Costa Rica well away from the tourist areas. They live like much wealthier folks do here in the US and inject badly needed cash into the local economies.

  8. Gill says:

    Love the collage! Yet again proving the hippie credo… the faster you go (grow) the behinder you get….



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