Thursday, June 30, 2016

On Thin Ice...



Having an economic
... Chart Attack !!!
Have the chance to work and interact with several credit unions on a detailed, intimate financial basis.  

Get involved quite often due to some concern which has arisen over a decline in financial status or the governance structure of the credit union.  Lots of "problems" out there these days! Not much of a surprise that "The Great Recession" has wreaked havoc on credit unions - large and small alike.

The "problems" are generally pretty similar:

  1. Heightened loan losses and delinquency due to the economy.
  2. Low returns on investments due to the zero interest rate environment created by the Fed.
  3. Moderate loan demand due to uncertainty by members about their future.
  4. Higher operating expenses due to added costs of "doing business" - services, compliance, technology, infrastructure, staff, and "regulatory burden".
Often the credit union is losing money in the current economic environment which is of course a cause for concern.  


Quacks??
Smaller credit unions, those with less than $50 million in assets, have been particularly hard hit.  

Many of these credit unions are being "forced" into unnecessary mergers by overly intimidating regulators - who are misdiagnosing the severity of the financial illness - and often prescribing precisely the wrong medicine, in a fatal dosage, to an unfortunately trusting and obedient patient.

Let's take a quick look at an example credit union...

Wednesday, June 29, 2016

A Bullish Theory Of Asset Liability Management...



ALM or Jackson Pollock?
Pet rocks and asset/liability management (ALM) have a great deal in common. Both make much out of not a lot, are of limited interest even when over-hyped, and retain broad import only for the narrow of mind.

The regulatory community has given little thought (some would say no thought at all) to the human "madness" for economic fads and fashionable thinking.  A serious study of this human phenomenon might be an important exercise for some modern day Darwin with little else to do.  A scholar studying our quantitative "herd hysteria" might possibly propound a new "Origin of the Specious" or formulate a new "Theory of the Survival of the Fetish".

What does make us so ready to regurgitate rubbish on which we lack a cogent grasp?  Why, like moths before a flame, are we so fascinated with the facile seduction of cookbook, cookie-cutter, quantitative solutions with recipes which so consistently prove to be half-baked 

Half-baked, half "aid"!
(…. and quite often "robustly" so!). Why is our trust in common sense and actual experience so filipendulous? 



(You just don't know how hard it is to work a word like that into a narrative!)...

Tuesday, June 28, 2016

Cruise Line....


My personal favorite for best ever pick-up line was from a pleasant lady who slid in next to me at the deck rail of a departing cruise ship and asked:  

"Where ya' going?"



Wasn't real sure how to answer that question, since most folks on a cruise ship are usually headed in the same general direction.... 




....but did introduce her to my wife who, having overheard the question, was eager to give her "directions"....

Monday, June 27, 2016

A "Level Playing Field"......




"All we want to do is level the playing field...."




The interesting thing about "level playing fields" is that you sure hear a lot of people preaching and complaining about them; but, much like the Loch Ness monster, it's hard to find anyone who has ever really seen one!

Dirt Sculpture !!
Fact is most Southerners, being newly "off the farm" - and only half a paycheck from returning - know full well there ain't no such thing as a level field.  

If you plowed and planted a field level, a "hard rain" would "set up" on the field and drown the crop. Planted fields are shaped and tapered, valleyed and hilled. There's a sculptured artistry and fine craftsmanship in a farm field which has been thoughtfully and properly John Deere'd. 

Even big city soccer Moms - down on their knees at the edge of the field, cussing like a sailor at the Ref while cheering their 4-year olds on - have noticed that the playing pitch has been mounded so that it will drain.  It's not level!

Most folks you'll find calling for a level playing field are usually just finagling for a favor, seeking an advantage, or working hard to promote their own selfish, self-interest.  Most are out in left field... especially the "b-worders" who  keep whining about a level playing field between b*@ks and credit unions. 

Well, personally I give up - time to "move on".  I'm ready to concede to their level playing field request!  Here's the deal.....

Saturday, June 25, 2016

From The Field...


Possible "unauthorized transaction":


"That charge on our card is not correct!  My husband couldn't have been at that gas station; he was supposed to be out of town that day..."

Friday, June 24, 2016

From The Field...




" Internal Audit paid the branch a visit this month.  I informed them we didn't have time to be audited, because it was tax season...."


From the Field...



B-a-a-a-h....

The First Evaluation:

" I've only been with the CU for 6 months and really enjoy working here.  I don't have any complaints, but give me a little more time....."

Great weekend ahead??!!
Go for it ...

Thursday, June 23, 2016