posted on Nov, 5 2011 @ 06:54 PM
Originally posted by Fractured.Facade
"Moving" your money from the big banks to credit unions is laughable... It comes back to them eventually, where do the credit unions invest? who are
the credit unions affiliated with?
What goes around comes back around.
If you really wanted to shake up the system... Remove everything in cash, all 70,000 of you, pile it all up and set it on fire.
Of course then things would get really ugly in a hurry... Better stick with the more lame stuff that really doesn't accomplish much but makes a
statement in the media.
Will respond to two piecees. First the fact that CUs will invest in big banks. Not too sure that CUs invest in big banks. Here is a breakdown of
the average assets (things they use to make money) of a CU. from my Financial Institutions textbook used in the Masters in Finance program at
Assets: (in billions)
Checkable deposits and currency: 40.3
TIme and savings deposits: 18.2
Fed funds and security RP's 6.1
open market paper 2.3
us gov treasuries 114.6
home mortgages 272.9
consumer credit 234.6
mutual fund shares 2.0
misc assets 19.8
Doesnt look like much, if any, is in other banks. most, to my view, looks like consumer (basic person) credit and home mortgages.
source:Saunders and Cornett Financial Institutions Management: A risk management Approach. 6th edition page 56.
And burning money would hurt the customer. when the banks need more, they print it. Hurting the banks would be taking out all deposits, switching to
credit unions, gold and barter, upping the tier 1 capital ratio etc.
or limiting the profits of banks with some law that would minimize their ability to take risks. like not let them use deposits and lend them out.
you know actuqlly ahve to keep the assets safe (would allow them to not use insruance?) Just thinking out loud. too tired to knwo the solution to
the biggest world problem.
But stop lying fractious facade!