stupidity in action.

Today was a discussion in one of my Blackboard classes online, a business administration class. I tend to post lengthy discussion answers and responses, and I always research what I'm saying and put a lot of thought into them.

Someone made me mad today, because they are stupid and dismissive of my wholeheartedly useful information.

JANIE: IF I was considering investing in the stock market, I would personally prefer mutual funds.

The advantage of mutual funds is that you're investing in a multitude of companies that would give me ownership in each one. According to the textbook, mutual funds are easily accessible through the internet and can also be purchased direct without having to pay any fees or commission to a broker. Also, mutual funds are recommended for those new to investing, such as myself.

The disadvantage of mutual funds would be as any investment--you are taking a risk,especially with what's going on with the stock market today. The economy being in the state is it right now, I don't personally trust my money in any tax shelter other than a savings account.

The disadvantage of investing in individual stocks is, again, the history of the declining stock market. Also, if a company or corporation is not doing well or a failing growth rate, investors can lose money.

The advantage of investing in individual stocks is great if you invest in blue-chip stocks, which is known to have high returns.

OK. I agree, banks are more sound investments than stocks or mutual funds, so I posted....

Hopefully.... your bank deposits are insured! Many banks are insured by the FDIC. WaMu was just shut down yesterday by the government and sold off to JPMorgan. In the case of uninsured bank deposits (many of which are balances of under $10K), you could possibly be taking a huge gamble, just like stocks and mutual funds. Nothing is completely safe and risk free, especially in today's economic times.

Here's an article I found about uninsured accounts. Interestingly enough, the article was written in February of this year, and bank closures and buyout events were predicted on the horizon.

http://www.marketwatch.com/news/story/how-risky-uninsured-bank-deposits/story.aspx?guid=%7B03FBB3D6-6F11-455A-8730-04DC7082FEEA%7D&siteid=yhoof

You just really need to do research before you trust your money to any single investment, whether its stocks, bonds, mutual funds, and even a simple checking or savings account from your local bank. Even diversifying your portfolio won't help if certain outlets go under.

Then.....someone came in after me and posted this drivel:

ANDREA: Hi Janie: I wanted to tell you that your info in your discussion was informative. I had no idea that Blue-Chip stocks were known to have high returns. Great post.

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REALLY? You didn't know the definition of a blue chip? That was great and informative?? Well, thats nice that you learned something as simple and retarded as that, but I can tell by how you posted with the colon (Hi:) that you were being dismissive of my extremely informative post. Did you know that your bank might not be FDIC insured? So if your bank shuts down you'll probably lose every penny of your money?? I doubt it, so THAT was a great post.

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ME: I'm not trying to sound dismissive of your post or the author of this thread, nor am I trying to start an argument. I agree that if you do not have much disposable income, using a savings account through a bank is financially sound compared to playing in the stock market.

But...

I was simply making a point that not even savings accounts at banks are always financially secure. If you do not do your research and place your money with a bank that does not insure deposits under $10,000 by the FDIC, you may as well kiss that money goodbye, especially today when many major financial institutions in this country are going to be shut down (which we will most likely see happening soon, following WaMu's lead). Now that is a good and informative thing to know!!

Blue chip stocks performing well are common knowledge. Here's a definition of blue chip stocks from online:

A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. The term derives from casinos, where blue chips stand for counters of the highest value. Most blue chip stocks pay regular dividends, even when business is faring worse than usual.

Again, I am not trying to start an argument. Just wanted to point out that maybe being aware of the financial institutions with whom we are banking and how they protect our savings accounts are a little more important facts to know than what the definition of a blue chip stock is.

*** END

So, yea. That's what pissed me the fudge off tonight. Stupid effin people.