Easy Gardening: Plant In a Kiddie Pool

It may sound crazy -- or tacky to some (that's fixable), but planting a little garden in a kiddie pool is apparently a great thing. I'm going to try it.

What are the advantages?

1. No big digging efforts
2. You can scoot the thing into the garage if the weather's getting bad
3. It's easy and cheap to water
4. It's a manageable size for the newbie gardener, or for the kids
5. It will give you lots of produce if you plan right

Helpful hints I've discovered: drill some holes in the sides of the pool to allow excess water to drain away, and consider painting the rim a neutral shade and piling rocks around the sides if you want to be more, well, subtle, in your landscaping.

Sources:

History of Wading Pool Gardens
HelpfulGardener
IVillage Container Gardening Forums
Gardener'sNet

The FDIC Watch List: Should You Pull Your Money Out of Your Bank?

Yesterday, I was buying groceries at the local HEB and as usual, I whisked my debit card through the little black box, inputed my passcode, and waited for my receipt ... only to have the cashier ask me to run the card again - it hadn't gone through.

Now, I always know the balance in my checking account and my first thought was Identity Theft! But with today's economic mess, right on its heels was my second thought, My Bank's Gone Under!

Turned out that the cashier hadn't pressed a button, and my second attempt worked just fine ... but I got to wondering about the security of my bank deposits and went surfing on the web to investigate.

Here's what I learned:

1. On August 26, 2008, FDIC chairwoman Sheila Barr had a press conference where she announced that 117 banks were now on the FDIC "watch list," up from 90 banks at the beginning of the year. So, they've added 27 banks to the list in the past 8 months. It's the highest number in the past 5 years.

2. At this press conference, the head of the FDIC didn't release the actual list. The feds don't want to give out that actual information, because they are afraid that depositors will read the list, and run to take their money out of those banks on the list. The FDIC Watch List is as big a secret as the recipe for Kentucky Fried Chicken, it seems.

Of course, there's not enough cash in these banks to cover a run - banks loan money, that's how they make a profit (think Jimmy Stewart in It's A Wonderful Life) ... and the FDIC would have to step up and provide cash to cover the depositors' demands - and that's true for the healthiest of banks. The problem these days, apparently, is that loan business hasn't been profitable.

3. So far this year, 13 banks have failed in the US (WaMu was number 13). Only three (3) banks failed in 2007. A banking analyst interviewed by ABCNews opines that we'll see over 100 bank failures by the end of 2009, although most will be "small institutions."

4. LACE Financial (a company that monitors the banking industry) reports that for commercial and savings banks, net income was 74% lower in the 2nd quarter of 2008 (April, May, June) than it was for the first quarter (Jan, Feb, March) -- and that the 2nd quarter of 2008 was 87% lower than it was last year, in 2007. This is industry-wide: sounds like banks are not making any money, huh?

The FDIC Watch List -- and Other Bank Ranking or Watch Lists

5. There are companies or groups that rank the safety of banks, independently of the FDIC. These include:

• Bauer Financial (go to their site, find your state or your bank)
• LACE Financial (LACE doesn't offer up its "Watch List" online for free; however, it does report that in the second quarter of 2008, its D List (next to the lowest ranking) rose by 40% and its E list (lowest ranking) rose by 64%. Right now, LACE has 684 banks on its D List, and 490 institutions on its E list. And, LACE also finds its List to be more accurate than the FDIC Watch List, because the FDIC List has to await the bank examination process and the CAMEL ratings - the LACE list is simply faster to finalize. )
• VeriBanc (you're invited to call and chat with them -- but there's a fee)
• The Implode-O-Meter (a non-industry participant that has created its own ranking system and website list -- "implode," defined as "the "imploded" status is somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or a "firesale" acquisition. The Companies include all types (prime, subprime, or a mix of both; retail or wholesale; subsidiaries and entire companies). Note: Companies listed here may still be operating in some capacity; check with them before making assumptions." According to this Watch Group, 286 major financial institutions have "imploded" in the US over the past year and a half (since 2006). )

So, with this scary news, what do you do? Do you pull your money?

6. If you've got money in a bank, the first thing you should know is whether or not your money is deposited at an institution that is protected by the FDIC. Go check the FDIC online list to find out. Whether or not the FDIC is strong enough to handle the hits it may be facing is one issue (watch for an upcoming post on that concern)but not having your money in an account that's even offered FDIC protection is another. If you're banking, then you want FDIC protection.

7. Next, remember that the FDIC doesn't cover everything -- the contents of your safety deposit box aren't covered; any amounts over $100,000 in your checking account and $250,000 in your IRAs aren't covered; money market funds, etc. are not covered. Move your funds around, as needed, to make sure you are within the guidelines -- and if you've got cashed stashed in those safety deposit boxes, think about whether that's the best place for it to be.

8. If your bank fails, and it's protected by the FDIC, then you may face a couple of days where access to your account might be hampered. Keep some cash on hand, if you can, to cover the necessities -- diapers, gas, things like that.

9. If you choose to take your money out of a bank, then you're faced with difficulties. First, how to protect it. That's one reason for a bank, right? Fire, burglary - these are real threats to your nest egg. Also, you're going to face a difficult time paying your bills if you've been accustomed to writing a check, or paying online. You can pay by money order, but it's a hassle. Maybe you stash cash and keep an account open at an institution you consider safe, just to pay bills - keeping as little cash there as possible, depositing right before you pay the monthly invoices?

What does all this mean?

10. Here's LACE Financial's outlook:

The financial condition of the U.S. banking system is rapidly deteriorating as the increased number of banks on the LACE Watch List reflects. It appears to us that nineteen of these banks should have already been closed and thirty-two other banks require capital infusions or regulatory assistance. A major cause of failure for several of these banks will be due to high concentrations in real estate construction lending. Given the likely resource constraints of Federal regulators, we would expect a measured closure rate of approximately ten banks by the end of 2008 with failure rates accelerating after the first of the year. As such, LACE Financial maintains a negative outlook for the U.S. banking system.

11. For me, this means that this Fall will be bad, but next year will be worse -- unless some major events transpire. In my surfing around, I've started to see the phrase "slow depression," mentioned quite a bit. I'm going to pray and study a lot, take it a day at a time, and a step at a time, and I'm going to read those folk over at the Daily Reckoning, among others. They've been warning about this crisis for a long time now.

Fear is Your Enemy

Fear can hurt you, even destroy you. This is no time to panic, it's time to be smart. You will get through this. Everything is going to be alright -- maybe not the same, but you and yours will be okay. And, if you're already in the process of living a simplicity lifestyle, you're ahead of the game.

For more information:

What is Simplifying? Should You Do It?
Starting to Simplify - Step 1
Starting to Simplify - Step 3
Are You Brave Enough to Read Empire of Debt?

Procrastination Is An Enemy to Simplifying Your Life

Simplifying your life means changing your lifestyle. Changing your methods of living life can be very difficult, even when you are proactively wanting to alter things.

When you are involuntarily simplifying because of a lost job or unexpected expenses, it gets even harder. It's easy to procrastinate. Especially when things seem overwhelming. When you're afraid, it's easy to be a deer in the headlights - thinking that if you do nothing, maybe it will all go away.

Procrastination is Your Enemy

Procrastination, however, is your enemy. Don't put off things that will ultimately benefit you and your family. Nothing good can come from it.

Hara Marano's Great Article

There's a great article by Hara Marano over at Psychology Today discussing the evils of procrastination, and I encourage you to jump right over there and read it. It contains such jewels as:

• Procrastination is a "profound problem of self-regulation." I never thought of procrastination this way before, and it makes good sense.
• Procrastination "is one response to an authoritarian parenting style ...," where controlling parents prevent the kids from "developing the ability to regulate themselves, from internalizing their own intentions and then learning to act on them." Without judging anyone's childhood, I like the idea that identifying your own intentions and learning to act on them is a kind of self-awareness and I especially appreciate the phrase "self-regulation." Regulation of one's self, instead of having advertising agencies regulating one's behavior by set society standards, is a key component to successfully simplifying your life.
• "Procrastinators "actively look for distractions, particularly ones that don't take a lot of commitment on their part." The example that was given was reading (or checking) e-mail, but I'm thinking video games and watching mindless television also count. Why do this? "They distract themselves as a way of regulating their emotions such as fear of failure."
• Procrastinators aren't all the same. There are the "thrill-seekers, who wait to the last minute for the euphoric rush;" the "avoiders, who may be avoiding fear of failure or even fear of success, but in either case are very concerned with what others think of them; they would rather have others think they lack effort than ability;" and "decisional procrastinators, who cannot make a decision ... [which]absolves procrastinators of responsibility for the outcome of events."

How to Change?

How to change? The Marano article suggests "highly structured cognitive behavioral therapy," whatever that is. Personally, I think that the power of prayer is of great use here, too. It's been my experience that faith can conquer procrastination:

• “If you wait for perfect conditions, you will never get anything done.” -- Ecclesiastes 11:4 (The Living Bible)
• "For God did not give us a spirit of fear, but of power and of love and of self-control." -- 2 Timothy 1:7 (CET)