The P.A.

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

The More You Use SLCCU, The More Everyone Benefits

On February 8th, 2010, posted in: Uncategorized by 1 Comment

Mohamed El-Erian is really smart.  You may not know him, but suffice to say in the world of macro-economics, business and investment; this gentleman is on a very short list of the world’s great thinkers.  Google Mr. El-Erian’s bio if you want to be impressed.

Early in January of this year in an article emphasizing taking action over waiting for better times to emerge, he wrote on the overall direction needed to revitalize our economy and be successful in the upcoming decade.  His thoughts struck me as eerily similar to a business model with which I’m intimately familiar – that being credit unions.

Mr. El-Erian discussed with great eloquence that in post-crisis periods (I think we all agree we’re currently in this place), democracies will inevitably redistribute away from folks that have weathered the storm to those that have suffered the most.  Because we are giving, caring people, this action should be viewed as understandable and desirable.

The caveat to Mr. El-Erian’s comments however focused on the idea that any redistribution of income and wealth must not crowd out the importance of creating both (income and wealth).  TV’s talking heads have been wildly opining on this “redistribution” issue.  I wish Mr. El-Erian could do the talk show circuit and slow down the rhetoric with his simple yet effective understanding of what needs to happen.  Basically, help out those who need it the most in this critical time, yet allow those who are good at creating income and wealth to do what they do best: make money.  Win-Win.  Brilliant!  And therein, ladies and gentlemen, is the issue at hand and the point of conversation of so many: “How do you do this?”  We’ll leave that discussion to those whose lot in life is to debate the pros and cons of such an undertaking.  We only have so much room in this blog.

My point in sharing Mr. El-Erian’s thoughts is that St. Louis Community Credit Union (SLCCU) is very good at helping those in need, as well as allowing for everyone to increase their income and wealth.  The cooperative nature of the Credit Union is that we return as much of our earnings as possible to the member.  When the whole of our members, all 38,000-plus of you, use the Credit Union in a variety of ways, we put the money we earn from your activities to the best possible use – we give it back to you. How’s that give-back work?  Well, here’s just one example.

Mr. Jones is a saver.  SLCCU pays Mr. Jones a great interest rate on his savings.  Mr. Jones’ deposit is loaned out to Mrs. Smith.  She pays more interest for her loan than he gets on his savings.  We take the difference and pay better rates on investments and charge lower loan rates than the competition.  We also build branches, provide free services, build capital, hire great people, develop products that meet member needs and generally increase everyone’s standard of living.  Mr. Jones benefits; so does Mrs. Smith.  And so does everybody else who is a member.

The more we all use the Credit Union, the more everyone benefits and we accomplish Mr. El-Erian’s goal: To help out those who need it the most during these difficult times while allowing people to create wealth.  So if you bring us all of your business, we all will benefit.

One Response to “The More You Use SLCCU, The More Everyone Benefits”

  • Russell Brooks says:

    Mr. Adams,Very insightful comments. I will try to learn about Mr. El-Erian than I already know. As long as we are talking about caveats, I am sure you are aware that PIMCO had a MASSIVE conflict of interest in its paid analysis of U.S. Central’s bond portfolio. As one of the largest fixed income managers, it is in PIMCO’s interest to drive down the value of mortgage securities by painting as bleak a picture as possible.Somehow this was missed by the NCUA and others.

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