Playing God with the Banks

Unfortunately, money is what makes our world spin. And the people in charge of it are the ones who like it most and do whatever it takes to get it. Goldman Sachs Sachs CEO Lloyd Blankfein was recently quoted saying “[I am] doing God’s work,” as if running the money system was some type of religion. Shortcuts, quick-cash, and bonuses are the name of the game when you bathe in hundred dollar bills.

What makes the banking situation even more frustrating is they now are being funded by taxpayer-dollars and have more power than ever. Since the recession, Bank of America, Wells Fargo, JP Morgan, and Citigroup have all become more concentrated due to government coordinated mergers. These banks now control forty percent of America’s bank deposits, half of the mortgages, and two-thirds of credit cards. They  dictate the fate of the American economy while we meekly sit around and watch our hard earned money run through their greasy fingers.

Credit Unions, however, offer an alternative to the centrally-owned bank swine. Established under law in 1934 by Franklin Roosevelt, they were in part created as a reaction to all the bank failures of the Great Depression. They are co-operatively owned institutions that function more ethically than banks and provide benefits banks fall short of.

Credit Unions are not for profit, not to be confused with non-profit, meaning they run on a very small surplus as opposed to banks which run on the maximum profit morale. Their not for profit status allows them to provide lower interest rates on loans taken out and higher interest rates on money deposited into savings. Their overdrawing fees aren’t as stiff (which is a big deal for me) and overall they are geared more towards serving their clients.

Credit Unions are also more community orientated. They function within a community and Federal guidelines usually prevent them from extending branches outside of a county. If you do not live within the precinct of a credit union you are not allowed to join, which keeps them local. Its basically a decentralization of a financial system I believe is too centralized.

The main argument against credit unions is their lack of convenience. They do not have ATM’s posted up all over town and if you travel it becomes a little more of a challenge to manage your money. Joining a credit union also requires withdrawing and transferring funds from any bank accounts you may have, which can be a hassle. However, the inconvenience of credit unions is relatively minor in light of what we sacrifice by participating in the American banking system.

Shifting who we are as a whole require us as individuals to make decisions and put forth effort that resemble our ideals. Putting your money in a credit union is similar to buying food produced locally.  It is taking power out of the hands of a system run by arrogance, greed and care little for individuals. Most of us need somewhere to deposit our money and checks, and credit unions provide the perfect compromise in participating in our society while at the same time shunning its negative elements.