c. myblog

May 13, 2010

Mini Age of Austerity?

Consumer behavior, specifically spending statistics, is being tracked with much anticipation these days.  Given that consumer spending accounts for 70% of the economy, this is no surprise.  So what is the forecast? According to a new Associated Press Economy Survey, two-thirds of the 44 economists surveyed believe that the frugality created during the Great Recession […]

April 29, 2010

When is Worst Case?

In risk analysis, it is important to make realistic assumptions about potential bad scenarios that could play out—large increases in interest rates and credit risk exceeding expectations are just a couple that come to mind. While interest rates are at an all-time low, credit risk is at an all-time high for some credit unions. In […]

April 23, 2010

Liquidity: Another Thing to Worry About?

Imagine a scenario where it is difficult to find deposits. Suppose the stock market is booming and members are taking funds out of your credit union. Even if you don’t have liquidity issues, what if your competitors do and deposit rates are higher as a result? Is this hard to imagine given all the liquidity […]

April 15, 2010

Bankruptcies on the Rise and the Evolving U.S. Debt Burden

Building on our last post on U.S. household debt being reduced primarily by default, and with consumer credit drying up, more and more struggling consumers are turning to bankruptcy as the only solution to solve their debt burden.  There were 158,141 U.S. bankruptcy petitions filed last month, a 35% increase over February’s figure.  Moreover, filings […]

April 8, 2010

There’s More Than One Story to the Statistics

Consumer confidence, jobless rate, existing home sales, manufacturing, CPI, PPI… just about every day a body of experts or analysts releases a statistic that indicates the state and health of the economy.  These statistics, numbers and findings are no doubt a helpful indicator for where the economy stands and the direction it might take.  However, […]

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