The P.A.

A weekly address from Patrick Adams,
President of St. Louis Community Credit Union

The Credit Union’s Business Practices Need No Interpretation

On October 25th, 2010, posted in: Uncategorized by 1 Comment

We are a world diverse with language.  Foreign languages abound.  I took Spanish in high school – two years.  I know enough to ask my way through a conversation as to where the nearest restaurant, bathroom, hotel or taxi stand might be.  I can thank somebody and tell folks when enough is enough – no mas!!!!  Beyond that, I know “mi llamo es Patricio.”  Honestly, I might have that wrong too.

Another foreign language is “business speak.”  This is a language usually rife with acronyms and confusion.  So much of today’s business language is indeed foreign to most people who don’t follow The Wall Street Journal (WSJ) with any regularity.  Reading between the lines is key to digesting what’s being said.  Interpreters are needed to navigate what is truly being said, a role I will embrace in the remainder of this blog.

A most recent article in the WSJ was titled “Airline Profits Taking Off.”  The interpretation is consumers are paying more.  The article goes on to say that the success of America’s airlines is because they “responded by paring their capacity.”  Interpretation: there are fewer seats on fewer routes, and that creates demand, limits supply and drives up consumer prices.  See how tricky they are?  The article reports (and this needs no interpretation) that their success has, in part, been due to “raising fares and increasing ‘ancillary’ revenue from fees for checked baggage and other services that once were free.”  Don’t ever forget that the “trickle down” to any business’ success is usually found on the back of the consumer.

Check this out, and I quote from the article: “In past industry cycles, airlines scrambled to grab market share from each other, which drove down fares and profits.”  A CEO for one of the big airlines further said this: “Fundamental restructuring has taken place.  Consolidation has happened.  Managements are focusing on returns rather than market share.”  He went on to say that the possibility existed that airlines could “succumb to the temptation and re-enter the destruction cycle of the past.”  Interpretation: Less competition has allowed us to increase costs.  To heck with the consumer!  We’re jacking up the price because there are fewer options and we love it.  Further interpretationI sure hope none of those other crazy airline CEOs get their heads in the clouds and start lowering prices.  Then we’ll all have to follow suit and we’ll make less money.  Idiots!

Pay attention to what’s going on.  The airline consolidation model is alive and well and taking place every day in the banking industry, too.  With fewer banks, there is less competition.  Less competition equates to you paying more money.  Remember, the banking industry has announced loud and clear that the “death of free checking” is right around the corner.  Less competition allows for supply and demand to get out of kilter, which opens the flood gates to making obscene profit at the expense of your budget and your future.  Buyer, beware!

Remember, if you want to screw up the entire plan for banks to charge you more fees, bring all your accounts to St. Louis Community Credit Union.  We fly by a different set of rules.  Up, up and away.  Think “bags fly free.”  We’re the better choice!

One Response to “The Credit Union’s Business Practices Need No Interpretation”

  • Blueyecon says:

    I heard M&I bank is now going to charge $10.00 per month if you don't have a minimum balance of $1,000.00 and they are going to charge $2.50 per ATM transaction starting in January. My Friend got a letter from them recently, she will be moving her account to the credit union this week.

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