The National Credit Union Administration
It apparently came as a surprise to many of you that SECU was created in 1937 as an employer sponsored benefit - like most other credit unions. A mutual investment/borrowing "club" to give North Carolina state and public school employees access to consumer credit. As we have seen, it really wasn't a true financial institution, definitely not a commercial bank. Credit unions were something different in the world of finance - different structure, different goals, different purpose.
SECU as an "employee investment/borrowing club" quickly evolved into a "family thing"; as it became difficult to justify forcing retirees or widows and children of members out of the membership. All members continued to have equal rights and the ideas of "once a member, always a member" and family memberships set the stage for growth.
Lending rates were low, decisions quick; savings rates were highly competitive. Dealing locally with folks who knew you and high quality ("we know you by name"!) service also fueled the fire. SECU treated you fairly and with respect - as an equal. You were, after all, among friends, family and coworkers. SECU "had your back" financially, that's why they were there.
Remember that the only money SECU had to lend came from the savings dollars of other members! If something "went wrong" at SECU, losses were deducted from your savings balance. All members shared equally in operating and lending losses. Your savings (share) deposits were uninsured at SECU! As a member, you were directly at risk of loss. You stood the chance of losing your life savings! Members paid close attention to their credit union - with good reason
Then along came deposit insurance via the federal government... and things began to change...
NCUA, the feds arrive... a change for the better?
well let's see, the fed is in debt by 36 trillion and counting...
ReplyDeleteFalse. American citizens are 36 trillion in debt and counting.
Deletegood point, so who's willing to sacrifice what needs to be done?
DeleteNational debt only becomes an issue when economic growth does not keep pace with the debt. Should be law to reduce debt by a percentage of the economic growth during times of economic growth (ie the last couple of years).
ReplyDelete"The U.S. national debt is so high that it's greater than the annual economic output of the entire country, which is measured as the gross domestic product (GDP)."
DeleteWe’ve been operating over 100% national debt/GDP since at least 2013. At some point taxes will have to increase a ton to even keep up with the debt payments with the current level of deficit spending (tariffs are a tax, but are not a progressive tax). Tax increases may not even be able to keep up with debt payments if spending continues to outpace income (ie taxes).
DeleteThe last surplus the US ran was in 2001. Let that sink in.
ReplyDelete