A few weeks ago, you were reminded through this very posting that, not only had avid savers gotten kicked in the teeth from the current monetary policy’s ridiculously low rates, but so do borrowers with less than pristine credit. As we move forward, sorry to say, it’s rinse and repeat for at least the next 24 months – minimum.
It has been brought to my attention by someone much more adept at detail than I that the “insurance rate wars” that have flooded the airwaves is a laughable, egomaniacal exercise in self-promotion with very little credibility. See, according to my source, most of the comparison data showing one company performing better than another is a result of the very company that’s paying for the ad doing their own analysis.
Here’s the rub. If you don’t have great credit, what’s it matter if rates are at record low levels? You ain’t getting one of those bad boys.
I’ve spoken (in this very blog) about society’s savers getting an “atomic wedgie” by the low rate environment we’ve witnessed over the past few years. God love them – they keep saving but, seriously speaking, the pain of low rates is going to last another few years – through 2015 is a good guess. The old joke about “money buried in a mayonnaise jar in the backyard” is pretty close to reality.
Here is the quandary. If the Consumer Financial Protection Bureau (CFPB) institutes any limitations on “courtesy pay” activity, it will further diminish the likelihood of any financial institution providing services to the low-moderate income (LMI) communities inside our region. FACT: Without fees generated from checking accounts (specifically courtesy pay), you’ll see a retreat from servicing those most in need of mainstream financial services. This is in direct conflict with numerous government initiatives that want financial institutions (FIs) to rush in – not back away.
You don’t have to be good at movie-making. You just have to make money. The definition of a successful movie is one that turns a profit for the movie company – not necessarily provides entertainment to you. Take just a moment out of your busy day and ponder that thought. How many businesses operate like the movie studios? “Way too many of them” is pretty close to the right answer. Not St. Louis Community Credit Union.