» Topic: ARE CREDIT UNIONS AN OPTION TO KEEP OUR CASH SAFE?Bonner & Partners

Sunday, 21 January 2018

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ARE CREDIT UNIONS AN OPTION TO KEEP OUR CASH SAFE?

Welcome! Forums The Big Picture ARE CREDIT UNIONS AN OPTION TO KEEP OUR CASH SAFE?

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    HENSE E.
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    I have a theory that I’m putting to the test. Rob has written at length about how to safely hold the cash component of a portfolio, and numerous commentators advise to keep all cash out of the banking system–with some even advising against holding gold in a bank safe deposit box. After all, in the case of an extended bank holiday (ala Cypress), one might not be able to access gold stored at a commercial bank. My theory is that keeping cash at a Credit Union whose membership is mostly comprised of government employees is an attractive option versus commercial banks. One, CU’s don’t dabble in the derivatives, etc as banks often do. Two, CU’s don’t pay huge Exec salaries. Three, CU’s whose members are mostly govt employees have a lower risk profile b/c their members are less likely to be fired. Also, many members are RETIRED govt employees who can no longer be “fired” from retirement and now receive a check for doing nothing. The risks I see to this option so far are: (1) Eventually, as govts are forced to cut back ala Greece, govt employees will be fired, laid off, etc. Example: The White House Asst. Chef was allegedly just laid off. (2) Unknown unknowns. There are likely problems w/ CU’s of which I’m unaware, and I hope other members will help us all discover them via this post. Look forward to hearing from all of you. Hense II

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