NCUA Squawk Box Update On Soaring Interest Rates...

Potential For Descending Sky 
Alert !!! 

  

                    

Listen Up !!

Credit Unions now have two choices in managing their organizations: 

1.) Continue to follow the interest rate guidance of those pretty silly robusterians.**
or.....
2.) Follow the advice of a far more distinguished economic savant, John Maynard Keynes who said:

"THE MARKET CAN STAY IRRATIONAL LONGER THAN YOU CAN STAY SOLVENT."

  

                                              01/02/2014       12/31/2014       2/3/2015


                 5-yr T-bill      1.72%               1.65%               1.28%

                10-yr T-bill      3.00%              2.17%               1.79%

                30-yr T-bill      3.92%               2.75%               2.37%

..."Everyone knows that interest rates must go up."
(NCUA - 2008/9/10/11/12/13/14/15...)

** NCUA's Economic Forecasters - well-known also as, longtime 4th-quarter advisors to the SeaHawks coaching staff on planning and risk management.

Albert Einstein And NCUA's Risk-Based Capital...

Talk about a "bad hair day"...!!

It is not too much of an exaggeration to say that Albert Einstein's name is synonymous with high intelligence - all across the world. 

The famous mathematician, the father of The Theory of Relativity was uniquely able to discern the underlying logic, to find the underlying "patterns" in even the most complex of subjects - like the universe for example!

Far out!

Einstein often observed that those "patterns" in life have always existed and that discovering those "secrets" is often simply a matter of "stepping back from the problem" so that one can more clearly see the "bigger picture". Much like an Impressionist painting, it is easier "to connect the dots" the farther back you stand!

Just flat out wrong...

Another observation was that quite often to solve a problem, we must overcome what we've been taught, what we believe, "what we know to be true" - which is very difficult to do.  But, "stuff does happen" and it's a fact that the earth has never been flat and that the sun has never revolved around our planet - despite "what everybody knew to be true" for many centuries.

About our lack of understanding and human misconceptions, Einstein is often quoted as saying:

  

"If at first an idea isn't absurd, there is no hope for it."

Brilliant thought, isn't it, in it's analytical simplicity and truth! 

Let's check NCUA's RBC idea against Einstein's wisdom...

"Curiouser And Curiouser"...

McWATTERS IN WONDERLAND #5:

"We're all mad here!"
- The Cheshire Cat
(D-St. , Alexandria)

Playing By Islamic State Rules...

McWATTERS IN WONDERLAND #4:

... OFF WITH HIS HEAD !!!

Lock Step "2-1"...???

McWATTERS IN WONDERLAND #3:

"Strange that no difference should ever be,

T'wixt Tweedledum and Tweedledee?!"

RBC: "Arguably Ambiguous"...

McWATTERS IN WONDERLAND #2:

Tweedledee and Tweedledum

$150k legal speak:

"Contrariwise", continued Tweedledee, "if it were so, it might be; and if it were so, it would be; but as it isn't, it ain't.  That's logic."

RBC: "The Pig Baby"...

McWATTERS IN WONDERLAND #1:

"Alice let it go, admitting that while it wasn't a very attractive baby,
it makes for a handsome pig."

(RBC #2.....Still the Agency's baby!)

Rants And Raves...

www. mitchellnews .com
... well worth a subscription!

From the Mitchell News-Journal (well, mostly...):

(For some of you who came in late... Mitchell County is located in the mountains of North Carolina - the Great Smokies, good people living life fully in hard-scrabble economic times... getting on with it, pulling no punches!) 

*  We wish all the beer drinking, cigarette smoking, fast food eating whole asses would keep their trash in their car when they drive up our road.

*  The schools need a new dress code - for the teachers!  Looks like dress down day at weight watchers out there.

*  People ought to keep their mouths shut on other people and quit judging them as they make out like they're Christians. They get on the phone and run their mouth causing all kinds of stink and trouble.  And yes I'm talking to you know who!

And, this week's "sum-it-all-up" in one brief statement:

End Game...

Q:  Well, how do you feel about death?

Big Macro Economics...

Talk about a frightening thought!  It may come as a shock to many of you that this writer, in a prior life, once served for a couple of years on a financial institution advisory panel at the Federal Reserve.  Sounds pretty impressive, doesn't it!  Just e-mail me, if you need an autograph - no charge...

Huddling with Alan Greenspan, Rog, Ned, Mike and the boys on the micros and macros of supply and demand is a tizzying experience which invites intoxication. Gathered in a board room decorated to make Versailles appear quaint; properly awed, it's easy for one's sense of self-importance to run fully and freely amok. Are they really listening; or just killing a couple of hours before lunch? Are those narrowing eyes a sign of intent interest or growing drowsiness? Are they earnestly taking note of our local economic views or simply listing "get milk", "drop off dog", "pick up laundry" reminders for the end of the day commute?

As you might imagine, "advising the Fed" on economic policy is a role I find wildly and severely humorous. After all, how does one advise the gods? What should one tell the all-knowing? What do I know which they and 10,000 expert government economists have missed? And, on a more intricate level; what does Mr. Greenspan really mean when he says "Good morning!"? Does he actually mean it or does he believe our hopes for the morning are irrationally exuberant? How good is "good"? How long will it last? What will it do to interest rates? If I believe I understand what he says, does it mean I've missed the point entirely? Is he being opaque or am I being dense? Who's on first, what's on second... Disconcerting isn't it!

How does one make a contribution of value at this level?