New SPAM From NCUA - Third Bite: "Econ. 101"....

Do They "Eat Their Own Cooking"?

How we doing with the NCUA SPAM analysis? (see posts of 6-7&11-12).  


If you struggled with "the first exam" don't be surprised, 'cause NCUA no longer uses a "pass/fail" system.  Exams are now measured more on a "never good enough" approach and graded "on a curve(ball)"!  Even appears that many exams may now be graded in advance:  "Here are the conclusions upon which our findings will be based!"


But, before we proceed on to the NCUA SPAM loan/delinquency maps; a reader suggested that rather than continued critiques of the NCUA SPAM program, perhaps some "legitimate, constructive" suggestions might be appropriate - especially since NCUA is now "listening"! 


OK, good advice; here are three legitimate and constructive suggestions to improve the "backwards economics" being used in SPAM:

1. Focus on the principal geographic problem.

2. Repossess the Crayolas!  Since they won't be needed anymore - See #1 above.

3. Cut your "backwards economic" budget by $2 million (crayons are expensive!) and use those funds to establish regional CU advisory boards which will meet semi-annually with NCUA.  If you don't believe, that local CU folks know more about what's going on "economically" in their state and communities, than any two dozen DC-based economists - you've got much more than just a "listening" problem!  And, so does the entire credit union movement  See #1 above.