We are seeing our free market capitalism disappear before our eyes.
The founding ideals of our country are so closely tied to the basic premise of credit unions (member-owned, democratically controlled) that I now can see how credit unions will be different in the future: they won’t exist. Whether the threat comes from the Treasury Department’s Blueprint for a Modernized Financial Regulatory Structure, which omits the NCUA from the President’s Working Group on Financial Markets and merges the NCUA with the new FDGA (Federal Deposit Guarantee Administration), or some new “measure” that the government takes to shore up the markets, credit unions will face a major threat if the government continues to bail out large financial institutions.
Imagine telling our members where they could spend their money at. Oh, I’m sorry, we have a corporate agreement with Chevron and you can’t buy gas at Shell or BP. Mister Member, we’ve noticed you’ve spent too much money in Vegas and Atlantic City in the past few months so we’re going to put your assets in control of the credit union to insure proper usage. Crazy you say, right? AIG messed up and rather than letting the people who took the risk get hammered, the government is bailing them out. Banning short selling is even more shocking to me than that.
This is a silly argument, but what would happen if a CU told their members where they could spend their money? The members would leave. Or using the US-credit union analogy again, we’d use our democratically elected officials to change the rules.
I’ll leave you with a quote from the 10 Planks of the Communist Manifesto:
Centralisation of credit in the banks of the state, by means of a national
bank with State capital and an exclusive monopoly.