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For Conservative and Moderate Pagans
How You Can Make A Difference 
2nd-Jan-2010 10:16 am
Dragonfly Moon
Interesting article with a surprising conclusion how we as individuals (regardless of political affiliation) can make a difference in the current economic mess and circumvent the government/big business (pick your favorite villian).

Move Your Money: A New Year's Resolution
an excerpt:
..."We talked about the outrage of big, bailed-out banks turning around and spending millions of dollars on lobbying to gut or kill financial reform -- including "too big to fail" legislation and regulation of the derivatives that played such a huge part in the meltdown. And as we contrasted that with the efforts of local banks to show that you can both be profitable and have a positive impact on the community, an idea took hold: why don't we take our money out of these big banks and put them into community banks? And what, we asked ourselves, would happen if lots of people around America decided to do the same thing? Our money has been used to make the system worse -- what if we used it to make the system better?"

Where's your money? Are you contributing to the problem?
Comments 
2nd-Jan-2010 05:24 pm (UTC)
Our money is in two places - Wells Fargo (the soulless bastards) and a local State bank.

I love supporting a well run local company - so that's why half our money is there. But we need some services that are accessible across the nation so 1/2 is with Wells Fargo. As more services are offered by community banks, more money will be shifted to there.
2nd-Jan-2010 05:25 pm (UTC)
Usaa, which you have to be a vet, child of a vet to be a part of and a small local federal savings bank. I won't use Chase. We also have our car insurance with USaa and renters insurance(when we had our house, we even insured the house with them)
3rd-Jan-2010 06:54 am (UTC)
Good deal. Chase is a gang of evil, blood-sucking loan sharks.

Anyway, I think that Arianna is on the mark here. There's something to be said for keeping money circulating in the community.
2nd-Jan-2010 05:29 pm (UTC)
I think Ariana has forgotten though the very complex economic stuff between banks. The big banks, with the money in them, lend money to the smaller banks, and every bank in America that is insured by that insurance(1929 stock market crash I believe caused that to come into being) is propped up by the Feds.

She's simplifying the problem and making the big business into the evil doer. Part of the problem the banks had, was that they lent(ARM) to people who didn't have great credit, which was not a bad thing. Now, even people with good credit can't get a loan, because they may not meet the qualifications of debt to profit ratio.

It's a friggen mess.
2nd-Jan-2010 06:13 pm (UTC)
Although last reports I saw (sorry, don't have the reference quickly available) showed the larger banks were not lending - not to small banks, corporations, or individuals. They were putting the money instead in short term investment instruments that were, due to the Fed rate being effectively zero, giving them a guaranteed (low) return but without the risk associated with actually loaning out monies to anyone. This made sense from the point of view of returns to shareholders but not to improving the economy. I haven't seen corresponding stats showing smaller banks are also doing this; I would prefer to believe they are more community focused and still making loans.
2nd-Jan-2010 07:03 pm (UTC)
community banks aren't making loans either.(I suspect) We had our mortgage with one, Trustmark, they were a lot more Conservative, due to they have more to loose.

On the other hand they did fund the Autism soccer thing, and many small town activities.

I do not also know how much of the not loaning is due to new Fannie mae and Freddie Mac standards either. We could do with a Mortgage broker in this conversation, they would know more about this.
2nd-Jan-2010 05:29 pm (UTC)
sorry I forgot to add, the smaller the bank the more likely they are going to be more conservative with their money.
2nd-Jan-2010 09:09 pm (UTC)
Which is...a good thing. Banks should make solid lending decisions.
2nd-Jan-2010 09:13 pm (UTC)
Sometimes its a good thing, right now, it's holding back the economy.
2nd-Jan-2010 05:47 pm (UTC)
We've moved some of our money into a local community bank because the large bank arbitrarily lowered our credit limit (effectively evaporating our operating capitol) earlier this year. We also slowed down paying off cards because it didn't do us any good if the bank could just take the "cushion" away at any time.

So now we have a small nest egg in a local bank, where they're friendly and eager to work with local business (us). We can't pull the plug on the large bank because too much business goes thru it. But we can slowly shift over to the local bank.

You don't want all your eggs in one basket these days.
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