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A credit union has cut one of its interest rates to zero.
I thought the people with financial liquidity such as this amount (i.e. very high) were re-investing it in Main Street! Wow...I guess I was really fooled by what Wall Street guaranteed after their behinds were bailed out. Home ownership used to be a very good investment. That turned out to be untrue. Now, having money is not even a good investment. Where to now, USA?
Last week I moved a large (> $100,000) amount from USBank to a local community bank. Just looking for the best rate I could find. I couldn't find a credit union that would pay me as much as the community bank. The nice thing is, USBank offered to match the community bank rate but I had already done the paperwork. So when I have another large amount in a couple of weeks I'm going to check with everybody else before I ask USBank. If they match the best rate I'll stay at USBank.
So In other words, we really have no real use for banks anymore.
They won't pay their customers for using their money, and they don't want to lend it out.
Sounds like Medical Insurance companies.
Maybe they should call themselves non-profits.
Try this SCAM for awhile. Cccc If it gets some sympathy, because as a Business Entity, BANKS rrrr Currently an Albatross on Society....
Just goes to show how little interest there is in our economy. Like me, most people are just digging in and taking no risks. Hard to be a risk taker when your own governments hate you.
Loon03 - Just goes to show how little interest there is in our economy. Like me, most people are just digging in and taking no risks. Hard to be a risk taker when your own governments hate you. ------------------ What risk? The only people that take a risk are those that trust the "risk takers" with their money. Wall street got bailed out. The rest of us got the shaft.
It's a pretty bad sign when there's so much liquidity present that banks and credit unions cannot earn any profit on the loans they make. They will turn to fees more and more instead in order to keep the lights on. If things don't turn around soon, nobody will be keeping their cash anywhere except under their mattress--frankly, except for the convenience of paying bills and fire safety, there is no incentive to leave cash in a money market account anymore and the credit union is all but telling its customers to use "Bank of Sealy."
Those with big money are not investing it, and banks have money at no cost but don't make loans and don't want any more deposits - and we should trust them to make the economy run?... So tell us, GOP - why do those with big money get tax breaks to make jobs? They are just sitting on cash... This is 1928 all over again, and for the every same reasons. Put back Glass-Seagl and keep the money in the communities - the banks will either loan it to the local people and businesses or go under. Tax those who have the cash and move the money into the hands of those who will use it - just like they did in 1931. Redress the imbalance or die a slow withering death
This must not apply to all credit unions- mine (starts with an H, ends with "way") seems to have little interest in lending. (No pun intended).
What the article is saying is that there are more people wanting to save than borrow (more saving than borrowing). Given that Star is at their limit, And the low interest rate environment, Star cannot pay a decent or any return on savings.
I hope none of these too much money to save people don't hold huge amounts of debt. A great way to make 4-6% GUARANTEED is to pay your savings towards the principle on your mortgage. Better yet any credit card debt is a good target.
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425 Portland Av. S.
Minneapolis, MN 55488
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