Soapbox Special: The Night Before New Year's, 2009

[ Editor's Note -- Regular posting resumes on Jan. 5, but we thought this was too good not to publish. Thanks to Brain Hague for contributing this, and we hope you enjoy. Happy new year! ]

The Night Before New Year’s, 2009

Brian Hague 

President/CEO 

CNBS  

‘Twas the night before New Year’s, two-thousand-and-nine,

And not many investors were feeling so fine;

Two-thousand-and-eight had brought sobering news

That left many across the globe singing the blues. 

As last year unfolded, Fed Chairman Bernanke

Was up to some interesting new Hanky-panky

(That pun was intended; the Treasury head

Was up to his own tricks – they’d fill us with dread.) 

The Fed had been easing since back in September,

A curious fact, for did they not remember

That part of the central bank’s dual obligation

Was using the funds rate to ward off inflation? 

Yet prices were rising, and still the Fed eased,

But ‘Copter Ben said credit markets weren’t seized.

He told us the subprime mess could be contained

Such that financial markets would not soon be strained. 

Then came March, and the bailout of big Wall Street firm

Bearn Stearns, in an action that seemed to confirm

The Fed and the Treasury now were in fear

That the subprime contagion would worsen all year. 

Honey, I love you, but you don't need all those swans a-swimming.

by Ron Daly

Just wanted to thank all our readers out there from all across the country for their continued interest in our blog. Here's hoping you have a great holiday and some time to reflect on the year that's been and the year to come. 

We here at the Soapbox are hanging it up for the rest of the year and we'll be back on January 5. But before we go, we figured we'd offer you some money-saving advice. 

See, "Today" did a story about the 12 days of christmas - specifically, the fact that to purchase everything mentioned in the song, you'd need about $87,000. Here's the breakdown of what costs what. 

Adding it up

Prices of items in the Christmas carol “The Twelve Days of Christmas,” according to PNC Wealth Management: Partridge, $20 (last year: $15) Pear Tree, $200 (last year: $150) Two Turtle Doves, $55 (last year: $40) Three French Hens, $30 (last year: $45) Four Calling Birds (canaries), $600 (last year: same) Five Gold Rings, $350 (last year: $395) Six Geese a-Laying, $240 (last year: $360) Seven Swans a-Swimming, $5,600 (last year: $4,200) Eight Maids a-Milking, $52 (last year: $47) Nine Ladies Dancing (per performance), $4,759 (last year: same) 10 Lords a-Leaping (per performance), $4,414 (last year: $4,285) 11 Pipers Piping (per performance), $2,285 (last year: $2,213) 12 Drummers Drumming (per performance), $2,475 (last year: $2,398)

 

[From NBC's "Today" show website. Click here for the full article.]

I tend to be frugal. As such, I don't think I'll be getting my wife all these birds (23 in all...28 if you buy into the theory that the "five gold rings" refers to ring-necked pheasants), milk maids, leapers, dancing ladies, pipers and drummers. I think I'll go with a gift card instead. Everyone loves gift cards. 

Happy Holidays from CUSoapbox.

Good for Credit Unions! CUs Beat Bush to the Punch

by Ron Daly 

Last week we brought word about the Michigan Credit Union League's "Invest in America" program (click here for our post, "UPDATE: Michigan Credit Union League offering $10 billion in auto loans"). In short, the program was built to offer low-rate car loans to people who wanted to purchase a GM vehicle in the midwest - with a focus on areas that are heavy producers of American automobiles. $10 billion was made available to back the loans and encourage credit union members to purchase an American car and help the troubled auto industry. 

The program has since increased from $10 billion in available loans to $20 billion. Not only is there more money to be lent, there are more cars to choose from (Chrysler's joined in) and greater incentives (as much as $1,000 up front). You can read the story from CU Journal by clicking here. 

It wasn't long after the last story broke that Congress passed the buck to President Bush, forcing him to give the auto makers $17.4 Billion in federal aid. The assistance came with non-binding stipulations for change and a mandate to prove viability by March of '09 (read all about it in the WSJ article - click here). 

The "Duh of the Week" Award for 12/19/08

by Ron Daly

This one wasn't even a contest.

The "Duh of the Week" goes to Governor Rod Blagojevich. 

Often times in the Credit Union Journal, stories get published about whacked-out crooks who try to take from credit unions by crazy means. Some prime examples: 

Robber hid cash in prosthetic leg [click here]

'Church Lady' bandit strikes BMI [click here]

Provenant FCU President's Tussle With 'Bank Robber Bob' Leads To Suspect's Arrest [click here]

(Sidebar: sort of off topic, but kudos to Manager Mark Hatchel at Provenant for taking on 'Bank Robber Bob'. That takes guts.)

But church ladies and fake legs aside, the Hon. Governor Blagojevich takes the cake for crazy money schemes. Trying to sell a senate seat is corrupt. Trying to sell Barack Obama's senate seat? That's just stupid. It's like stealing the Mona Lisa and putting it up on Craigslist. 

Joe the Plumber is Here to Stay

by Ron Daly

I don't suppose I have to tell you who this guy is. 

His name is Joe Wurzelbacher, better known as "Joe the Plumber". He was all the rage in November, calling out then-candidate Barack Obama on his "share and share alike" policy and standing up now-Senator John McCain on the campaign trail. He came back recently to tell the American people about his distaste for McCain's attitudes on the bailout (click here). 

But more important than who he was is what he is now, and what he will be from now on - the voice of the average American. Sure, Wurzelbacher himself isn't so average - most people don't go from being an aspiring plumber to a recording star/author overnight. But the idea of your average guy or lady who just wants to be able to say "I get it. I understand." About government, or taxes, or the economy, or anything. 

It's these folks that have made the difference in the past few months. It was all the "Joes" out there who were hurting when the economy dove out of the sky like a dead bird. Their mortgages went underwater, their retirements were crippled, their jobs were in jeopardy. And they aren't out of the woods yet. 

Just a SIP (or - "Folks? The Meeting's Not Over")

by Ron Daly 

[Editor's Note -- Our popular Townhall Meeting page is still available for you to vent frustrations/ask questions/post links regarding HARP, SIP, CLF or any other CU related bailout topic. To visit the Townhall Meeting page, click the "Townhall Meeting" button here: 

Or on the left-hand column. Now, back to SIP.]

When TIME magazine was making the case in November for "Person of the Year", I paused when they suggested Ben Bernanke. I read about what might make the case for him to get the nod:

"By studying the lessons of the Great Depression — don't let the banks fail — he might have prevented another one." - from Time.com's POTY candidate evaluator.

I'm not sure I've always been a big fan of Ben Bernanke. Or the Fed in general. But if this is, in fact, the reason Bernanke has done what he has done and has tried to push help toward large investment banks, then I suppose there's some merit to the idea of making him "Person of the Year". Although, frankly, we all know who that'll probably be (Hint: It starts with a "B" and ends with an "arack Obama"). 

So, with that in mind, we turn our eyes to SIP, or the CU System Investment Program. With this,the NCUA corporate credit unions that are racking up billions in unrealized losses (read this CU Journal article) can stem the downturn long enough to make it to a recovery cycle. 

The Little News Story that Didn't

by Ron Daly 

I was getting ready this morning when Matt Lauer started up this news story: 

"The Little Bank that Could" 

Can't see the video? Make sure you have the latest version of Flash enabled and your browser supports media and scripts. To watch the video on MSNBC, click this link.

Well, isn't that just a sharp stick in the eye.

Good for Capitol Federal, but what about almost every natural person credit union in the country? 

UPDATE: Michigan Credit Union League offering $10 billion in auto loans

by Ron Daly

As a follow up to yesterday's story about the Big-3 Bailout, read this story about the MCUL's proposed long-range lending period for its members (click here for the CUJournal article). 

To read the MCUL's press release, click here. 

Another interesting - and stomach-turning - article: Inaction on big three would cost taxpayers billions (AP)

Tell us what you think is the next step in the comments section. 

A Horse! A Horse! My Four-door for a Horse! (UPDATE: NAFCU responds to WSJ article on CUs)

by Ron Daly

 

No, I'm no Shakespeare buff. And I haven't gone insane. I'm just fed up (no pun intended) with the Auto Industry's leadership. As such, I think this is the time to start riding a horse everywhere. Think about it: it runs on biofuel, it has low emissions (watch where you step, though), and I wouldn't have to sit in traffic every morning. Plus, I think my daughter would love it. 

Sounds crazy, huh? Well, so do the folks running America's auto industry. 

First, it was the private planes (read about the last time I was this miffed here). Then, it was the repeated begging that landed them $15 Billion, or around half of their requested amount. They claim they'll work for a dollar, which seems like a big relief until you realize that they'll still have access to their shares, their perks and their expense accounts. And it's not like they're thrilled with that paycut (get with it, Alan Mulally- click here). Sure, that seems like progress...until March when I'll bet they're all crammed into some Hybrid, racing to Washington to try and fish into Big Ben's pockets.

Bending Over Backwards to Pay It Forward

by Ron Daly 

Saw today that Golden 1 CU is giving away a home foreclosure (click here for article). There was a time when this sort of thing would be astounding. Although more and more, these giant acts of generosity are popping up at CUs across the nation. Just last month, Dort FCU was the one giving away foreclosed properties to people in need of housing (click here).

Not to disparage either CU - they're doing good things. My point is that CUs are really working to get members by making big, bold moves. It's easy to write that an FCU is giving away foreclosures, but let's look at what that means: one house, one plot of land, one family, no cost. Someone will be living in a house that they WON from a credit union. Makes that new toaster you'd get opening a checking account at a bank seem a little paltry, don't you think?