Talk around the water cooler, scuttlebutt it was called in the service, is that there will be more unity in Washington between the opposing parties. This allegedly due to the recent shootings in Tucson, Arizona.
Far be it from me to take lightly any hope of some sort of unity and forward movement by our elected officials, but it's so hard to believe they are taking such an outrageous act and using it as some sort of blanket truce, to tell us they are making an effort to be civil, and actually work together.
Washington thrives on division and derision, each side making the other look like fools and buffoons. Not to say that the current administration doesn't frequently look that way without any help from across the aisle. And not to say that the other side of the aisle doesn't also smack themselves with the stupid stick occasionally, and make us wonder why the hell they even open their mouths.
Unity? Actually moving forward to solve the issues that will make this country prosperous and productive again? Put people back to work and reduce the unemployment to near zero? Reduce the deficit, both at home and the trade deficit with other countries? Cut dependence on foreign countries products and energy, with a reasonable, not "knee-jerk" energy policy, that doesn't penalize ordinary Americans in favor of big business? Stop favoring splinter groups, and start listening to the majority of the American people on important issues? Cut welfare in favor of workfare, where people actually must work for money, and don't get paid for sitting at home having more children than they, or we, can afford? Stop paying for all benefits for illegal aliens, and tighten the borders so we have a secure America? Eliminate the so called "anchor baby" issue so babies born here to non-citizens do not automatically become US citizens?
No, this just isn't going to happen. Maybe I'm dreaming, but there is a left and a right in Washington and there is no centrist attitude that will allow them to meet in the center of the aisle. Unless there is a huge Pork Barrel there where all the politicians can heap their special interests in it along with a few things that really help the country along. And those special interests will offset and cost more than the good that the bills passed will do.
Finally, trying to pass off this new "unity" as a result of Congresswoman Giffords tragedy is shameful. The politicians didn't seem to want to be any more united for the twelve soldiers killed in the massacre at Fort Hood Texas in 2009. Nor for the killings of the four Lakewood, Washington police officers the same year, or for any of the other horrible incidents involving public servants or our service men and women. This is just a symbolic gesture to snow the public once again.
Sad, but with tragedy sometimes does come unity. Even more tragic is that I don't believe it comes in Washington political circles.
Sunday, January 30, 2011
Tuesday, January 25, 2011
How Stable is YOUR Bank or Credit Union?
Did your bank or credit union suddenly start charging for things they used to provide free? Did the dividends and interest rates on your savings , Certificates of deposit (CD's) and IRA Certificates go from sizzle to drizzle? Has the offered interest rates on car and other loans rocketed while those other rates have dumped? If so, could your institution could be headed for the dumper as well?
We all know that banks are greedy. Same as credit card companies, which in the end, are usually banks. But credit unions? Those who operate on the premise to serve members? To reinvest that money to keep interest rates low on loans, and interest rates high on your savings? Well, I'd start to wonder about that when there are huge spreads in those rates among various institutions, and nobody can, or perhaps is unwilling, to explain why.
Example: I did much business with a local credit union including banking online. Then I was informed they were going to charge for banking online, the only service I actually used. The cost would exceed that of writing checks and sticking stamps every month. They explained they couldn't subsidize the costs of free online banking any longer, and had to charge the customers. Around the same time, their interest rates on savings and certificates plummeted, and interest rates on loans started climbing. The National Credit Union Administration (NCUA) which is the credit union equivalent to the banking industries FDIC had down rated the credit union from "well capitalized" in December 2008 to "adequately capitalized" in September 2009, a sign to me of potential problems. Maybe not failure now, but any downgrade is important where money is concerned. Especially with all the banks, and to a much lesser extent, credit union, failures these past several years.
Another credit union that remains "well capitalized" sponsors big dollar local events. How that affects their pocketbook, I don't know, but they too started dropping their savings and certificate rates precipitously, while loan rates started edging higher. All those big screen monitors on the walls of the branches and fancy offices, along with television commercials and sponsorship of professional sports spectaculars must cost a bundle. And that money isn't going into the member's savings accounts for sure.
To look up how your credit union is doing, check the National Credit Union Administration website at http://ncua/gov Then click on "Find a Credit Union by State" or "Advanced Search" in the upper right and go from there. If you find your credit union by State, copy the name and then go back to "Advanced Search" since you'll need to do that to get more information. When you get your credit union, click on "Call Reports" and then a date, and when that page come up, click to view the block showing "PCA Net Worth Calculation Worksheet." Lines 13 through 16 should give you some idea of changes in the overall financial health of your institution, and how it compares with others in your state and local area, or around the country should you choose to look. Go back and look at different quarters and years, to see whether it's doing better or worse than in the past.
Some institutions have "Moderately Undercapitalized and Significantly Undercapitalized" captions, so who knows where they are heading?
Just a final thought. Three credit unions within less than a ten mile radius:
A: New car loan: 1.99% for 6 years
4 Year CD with $20,000 deposit pays 2.40% annual interest.
B. New car loan: 2.99% for 5 years, 3.99% for 6 years
4 Year CD with $20,000 deposit pays 1.80% annual interest.
C: New car loan: 3.99% for 5.5 years
4 Year CD with $20,000 deposit pays 1.06% annual interest.
Big disparity... and the reasons why may lie in the wellness of the institutions? Only time will tell. Here's some interesting reading:
http://bankimplode.com/blog/category/credit-union-failures/
http://blogs.reuters.com/felix-salmon/2010/09/24/when-credit-unions-fail/
http://www.fdic.gov/bank/individual/failed/banklist.html
More very interesting reading...the UNOFFICIAL problem bank list by Calculated Risk for Dcember 2010: http://www.forextv.com/forex-news-story/forex-unofficial-problem-bank-list-increases-to-949-institutions
Bottom line is that it's your money. If you aren't looking after it, don't expect someone else to do it for you. You know, those guys in the nice offices who never seem to come out on the bottom? Them. They're looking out for Number One and you aren't even on the list!
We all know that banks are greedy. Same as credit card companies, which in the end, are usually banks. But credit unions? Those who operate on the premise to serve members? To reinvest that money to keep interest rates low on loans, and interest rates high on your savings? Well, I'd start to wonder about that when there are huge spreads in those rates among various institutions, and nobody can, or perhaps is unwilling, to explain why.
Example: I did much business with a local credit union including banking online. Then I was informed they were going to charge for banking online, the only service I actually used. The cost would exceed that of writing checks and sticking stamps every month. They explained they couldn't subsidize the costs of free online banking any longer, and had to charge the customers. Around the same time, their interest rates on savings and certificates plummeted, and interest rates on loans started climbing. The National Credit Union Administration (NCUA) which is the credit union equivalent to the banking industries FDIC had down rated the credit union from "well capitalized" in December 2008 to "adequately capitalized" in September 2009, a sign to me of potential problems. Maybe not failure now, but any downgrade is important where money is concerned. Especially with all the banks, and to a much lesser extent, credit union, failures these past several years.
Another credit union that remains "well capitalized" sponsors big dollar local events. How that affects their pocketbook, I don't know, but they too started dropping their savings and certificate rates precipitously, while loan rates started edging higher. All those big screen monitors on the walls of the branches and fancy offices, along with television commercials and sponsorship of professional sports spectaculars must cost a bundle. And that money isn't going into the member's savings accounts for sure.
To look up how your credit union is doing, check the National Credit Union Administration website at http://ncua/gov Then click on "Find a Credit Union by State" or "Advanced Search" in the upper right and go from there. If you find your credit union by State, copy the name and then go back to "Advanced Search" since you'll need to do that to get more information. When you get your credit union, click on "Call Reports" and then a date, and when that page come up, click to view the block showing "PCA Net Worth Calculation Worksheet." Lines 13 through 16 should give you some idea of changes in the overall financial health of your institution, and how it compares with others in your state and local area, or around the country should you choose to look. Go back and look at different quarters and years, to see whether it's doing better or worse than in the past.
Some institutions have "Moderately Undercapitalized and Significantly Undercapitalized" captions, so who knows where they are heading?
Just a final thought. Three credit unions within less than a ten mile radius:
A: New car loan: 1.99% for 6 years
4 Year CD with $20,000 deposit pays 2.40% annual interest.
B. New car loan: 2.99% for 5 years, 3.99% for 6 years
4 Year CD with $20,000 deposit pays 1.80% annual interest.
C: New car loan: 3.99% for 5.5 years
4 Year CD with $20,000 deposit pays 1.06% annual interest.
Big disparity... and the reasons why may lie in the wellness of the institutions? Only time will tell. Here's some interesting reading:
http://bankimplode.com/blog/category/credit-union-failures/
http://blogs.reuters.com/felix-salmon/2010/09/24/when-credit-unions-fail/
http://www.fdic.gov/bank/individual/failed/banklist.html
More very interesting reading...the UNOFFICIAL problem bank list by Calculated Risk for Dcember 2010: http://www.forextv.com/forex-news-story/forex-unofficial-problem-bank-list-increases-to-949-institutions
Bottom line is that it's your money. If you aren't looking after it, don't expect someone else to do it for you. You know, those guys in the nice offices who never seem to come out on the bottom? Them. They're looking out for Number One and you aren't even on the list!
Subscribe to:
Posts (Atom)