As the present economic crisis continues to unfold, some noteworthy changes in consumer behavior have started to emerge. One with far-reaching consequences for credit unions is the increasing tendency for consumers to forgo paying for their mortgages while choosing to pay credit card bills. Between first quarter 2008 and third quarter 2009, the percentage of […]
For years, we have been emphasizing a list of 10 reasons (not in order of priority) risks are not appropriately managed in the financial services industry. Many of these reasons contributed to the volatile economic environment we find ourselves in today. Mindset—We can take action when bad things happen so things will never be as […]
In spite of recent signs that the economy may be turning around—including a 0.3% increase in real consumer spending in January to the highest level since May 2008—consumers still don’t seem to be buying a strong recovery. February’s present situation index, which serves as an indication of how consumers are feeling with regard to the […]
The Treasury yield curve is rarely as steep as it is today. The spread between the 3-month and 10-year has recently exceeded 350 basis points. In more certain times, steep yield curves are beneficial to credit unions because the rates paid on non-maturity deposits are influenced by the short end of the curve and the […]
In 2009, we experienced an unprecedented level of government intervention in the mortgage market; and it is not over yet. What happens when it is over? The expected end of the new home buyer credit in 2009 no doubt greatly contributed to the 17% decline in home sales (Source: Bloomberg News, U.S. Economy: Existing Home […]