Microecon question: Why are banks still in business?

[Perknose]

Originally posted by: rudder

Originally posted by: Perknose

Originally posted by: Atreus21
What do banks offer that credit unions don't that keeps individuals going to banks?

Not one thing except more fees and shittier service. Banks many commercials are full of wildly happy people, however.

I saw that banks tend to have more assets, and therefore might possible be able to loan out greater sums of money...

Credit unions make tons of loans to their customers, and at favorable rates, too. They are also more likely to service the small guy, which their customers are!

What is it about banks that isn't rendered obsolete by what appears, in my simple observation, to be a vastly superior model in credit unions?

Nothing.

But, in the political language of our esteemed republic, Credit Unions = socialism. They are collectives, communities organized, which hand out needed small loans liberally -- ALL words made dirty and evil for us over the years by our right wing.

How fucking stupid is that?

Different than Government socialism. With a credit union, I have a choice. No one is forcing me to deposit money into a system I may or may not use.

Nice try... but fail.

So . . . you're in favor of community organizers and collectives? Great!

 

[Perknose]

Originally posted by: Pantoot

Originally posted by: Perknose
They why can't I or most Americans join a credit union, something you didn't even know?

Could it possibly be because of the entrenched special interests of the banks -- you know, to quote you, capitalism at its finest? :roll:

Make a $20 donation to the NMFA and join penfed.org.

You and any American can join a credit union.

[edit: and pay 3.99% for a car loan]

Lol, what a work around to circumvent the regulations!

Turns out I could join penfed without the sketchy at best "joining" the NMFA with a "donation."

 

[dullard]

The main reason for me (and probably many other people) is convenience and access that big banks can provide.
[*]24 hours a day, I can call one of my banks and get problems solved, probably not at most credit unions.
[*]I can go into just about any city in the US and find a branch of at least one of the banks I use. On vacation and get mugged (no cash, no debit card, no credit card)? I can get to a branch of one of my banks in that situation, can you get to your credit union?
[*]Big banks have great websites for tracking your money, making changes, online bill pay, etc. Some credit unions do, but from what I've seen, it isn't that common.
[*]My banks are open on Saturday, Sunday, and weekdays until at least 7 pm (not all branches, but at least one branch in town does). No local credit union that I've seen offers hours like that.

Sure, credit unions have advantages. Someone above mentioned being known by name. I can go into two different banks and be called out by my name (one is a branch of one of the top 5 US banks). The key is to go to a small branch of a big bank if you want that service. Or, for small accounts, the difference just doesn't justify jumping through credit union hoops. Sure, they may be paying 0.1% more interest on checking accounts, but honestly, not many people have enough money in checking for that to matter.

The real benefit of credit unions is if you qualify for a loan there. That is where you can likely save a bundle. I strongly recommend a big national bank for checking and a credit union for loans.

 

[BigDH01]

Originally posted by: rudder
Different than Government socialism. With a credit union, I have a choice. No one is forcing me to deposit money into a system I may or may not use.

Nice try... but fail.

It's a form of market-based Socialism championed by thinkers like Proudhon (who had strong disagreements with Marx). Democratic collectivism combined with free association. You can find it listed on the modern term of Mutualism, which is embraced by many Left Libertarians such as myself.

 

[rudder]

Originally posted by: Perknose

Originally posted by: rudder

Originally posted by: Perknose

Originally posted by: Atreus21
What do banks offer that credit unions don't that keeps individuals going to banks?

Not one thing except more fees and shittier service. Banks many commercials are full of wildly happy people, however.

I saw that banks tend to have more assets, and therefore might possible be able to loan out greater sums of money...

Credit unions make tons of loans to their customers, and at favorable rates, too. They are also more likely to service the small guy, which their customers are!

What is it about banks that isn't rendered obsolete by what appears, in my simple observation, to be a vastly superior model in credit unions?

Nothing.

But, in the political language of our esteemed republic, Credit Unions = socialism. They are collectives, communities organized, which hand out needed small loans liberally -- ALL words made dirty and evil for us over the years by our right wing.

How fucking stupid is that?

Different than Government socialism. With a credit union, I have a choice. No one is forcing me to deposit money into a system I may or may not use.

Nice try... but fail.

So . . . you're in favor of community organizers and collectives? Great!

Why would there be anything wrong with either of those? I have free choice wither I want to join a collective or help my community through being a community organizer. And as long as those people that are community organizers don't try to infringe on my rights as a citizen... no problem.

Why are you totally ignoring the fact that when the Government forces me pay money to support welfare programs... that is socialism. I have no choice when the government takes my tax money and pays it to some lady who has eight children and sits at home all day drinking mad dog. However, through my church I donate money to help the various church ministries including missions abroad and helping people in need locally. I decide how much I can afford and can increase donations based on whether I think the ministry is effective or not. My choice.

Another example... I choose what radio stations I like based on programming, if I don't like programming then I do not listen to the station or its ads. Why does the government think it is a good idea for the popular stations to support ones with a specific political or idealogical agenda that are not profitable?

See the difference?

 

[Veramocor]

Originally posted by: rudder
I think there was a time when credit unions did not have the same FDIC rules and your money was not insured.

Trueish.

Federal Credit unions are not FDIC insured.

However, they are insured by the NCUA.gov which is an equivalent agency to the FDIC and offers the same deposit insurance.

 

[miketheidiot]

Originally posted by: rudder

Originally posted by: Perknose

Originally posted by: rudder

Originally posted by: Perknose

Originally posted by: Atreus21
What do banks offer that credit unions don't that keeps individuals going to banks?

Not one thing except more fees and shittier service. Banks many commercials are full of wildly happy people, however.

I saw that banks tend to have more assets, and therefore might possible be able to loan out greater sums of money...

Credit unions make tons of loans to their customers, and at favorable rates, too. They are also more likely to service the small guy, which their customers are!

What is it about banks that isn't rendered obsolete by what appears, in my simple observation, to be a vastly superior model in credit unions?

Nothing.

But, in the political language of our esteemed republic, Credit Unions = socialism. They are collectives, communities organized, which hand out needed small loans liberally -- ALL words made dirty and evil for us over the years by our right wing.

How fucking stupid is that?

Different than Government socialism. With a credit union, I have a choice. No one is forcing me to deposit money into a system I may or may not use.

Nice try... but fail.

So . . . you're in favor of community organizers and collectives? Great!

Why would there be anything wrong with either of those? I have free choice wither I want to join a collective or help my community through being a community organizer. And as long as those people that are community organizers don't try to infringe on my rights as a citizen... no problem.

Why are you totally ignoring the fact that when the Government forces me pay money to support welfare programs... that is socialism. I have no choice when the government takes my tax money and pays it to some lady who has eight children and sits at home all day drinking mad dog. However, through my church I donate money to help the various church ministries including missions abroad and helping people in need locally. I decide how much I can afford and can increase donations based on whether I think the ministry is effective or not. My choice.

Another example... I choose what radio stations I like based on programming, if I don't like programming then I do not listen to the station or its ads. Why does the government think it is a good idea for the popular stations to support ones with a specific political or idealogical agenda that are not profitable?

See the difference?

you live in a democratic republic, if you don't like it then, i don't know what to do for you.

 

[sandorski]

Must be different in the US. Here in Canada anyone can join a Credit Union. They still don't dominate, I think it's because of Convenience. Credit Unions are very localized, even the big ones only have a few dozen Branches. So you'll end up travelling further to one than a Bank, in most situations. If you move to another City or area, you're also forced to transfer your Account, something you don't necessarily have to do with a Major Bank.

 

[Infohawk]

Credit unions don't have thousands of branches and ATM locations. I'd also be curious about how their online services compare.

 

[StageLeft]

I am a member of a bank because a) it has lots of branches and b) I don't see how a CU is any better. Despite their ownership by members stuff they don't offer anything I'm aware of not offered by my bank. I have free checking, online bill pay, etc. and no credit union locally has a savings rate as good as the online ones, so what do they really offer? Our last car loan years ago was via a CU but now that it's paid off I intend on closing that account.

If you want to join a credit union then join a credit union. If you want to join a private bank, join a private bank. If you want to join a public bank, join a public bank.

The market will weed out the bad banks and keep the strong banks.

See how choice and competition works?

You didn't even come close, not even a little, in answering the OP's question.

 

[rudder]

Originally posted by: miketheidiot

Originally posted by: rudder

Originally posted by: Perknose

Originally posted by: rudder

Originally posted by: Perknose

Originally posted by: Atreus21
What do banks offer that credit unions don't that keeps individuals going to banks?

Not one thing except more fees and shittier service. Banks many commercials are full of wildly happy people, however.

I saw that banks tend to have more assets, and therefore might possible be able to loan out greater sums of money...

Credit unions make tons of loans to their customers, and at favorable rates, too. They are also more likely to service the small guy, which their customers are!

What is it about banks that isn't rendered obsolete by what appears, in my simple observation, to be a vastly superior model in credit unions?

Nothing.

But, in the political language of our esteemed republic, Credit Unions = socialism. They are collectives, communities organized, which hand out needed small loans liberally -- ALL words made dirty and evil for us over the years by our right wing.

How fucking stupid is that?

Different than Government socialism. With a credit union, I have a choice. No one is forcing me to deposit money into a system I may or may not use.

Nice try... but fail.

So . . . you're in favor of community organizers and collectives? Great!

Why would there be anything wrong with either of those? I have free choice wither I want to join a collective or help my community through being a community organizer. And as long as those people that are community organizers don't try to infringe on my rights as a citizen... no problem.

Why are you totally ignoring the fact that when the Government forces me pay money to support welfare programs... that is socialism. I have no choice when the government takes my tax money and pays it to some lady who has eight children and sits at home all day drinking mad dog. However, through my church I donate money to help the various church ministries including missions abroad and helping people in need locally. I decide how much I can afford and can increase donations based on whether I think the ministry is effective or not. My choice.

Another example... I choose what radio stations I like based on programming, if I don't like programming then I do not listen to the station or its ads. Why does the government think it is a good idea for the popular stations to support ones with a specific political or idealogical agenda that are not profitable?

See the difference?

you live in a democratic republic, if you don't like it then, i don't know what to do for you.

My brother in law has been out of work going on a year now and is now on food stamps. I have no issue with welfare programs... but when entitlements from the government become expected and is managed in such a way that it encourages a lifestyle based on those government entitlements... that is where I have a problem.

My brother in law will be employed again (hopefully)... and he will no longer require assistance. Now how this got from credit unions versus banks...

I have accounts in both a credit union and a bank. I keep my credit union account because the availability of quick and easy loan approvals if needed and the interaction you have with the people that run it. I moved most of my jack to a bank because the credit union is a smaller operation and their online services cannot compete with what is offered with my bank now.

 

[Triumph]

Originally posted by: Perknose

Originally posted by: Patranus
If you want to join a credit union then join a credit union.

The ignorance in your statement is massive. Membership in a credit union is restricted to the special affinity group of it's charter. Most Americans can't join any credit union at all because they don't belong to any of these restricted groups.

Next time you try to dispense your pompous but hilariously ignorant advice, Mr. Free Market, better educate yourself first as to just how unfree our market really is.

Right, the poor people of this country who can't do anything for themselves need a right to access a credit union. Oh the horror! The greatest travesty since slavery! :roll:

I'll stick with this evil conglomerate, this pinnacle of all that is wrong with America, this Bank of America, for some very simple reasons:

- I have no reason to go into a bank and use a teller.
- I don't want the limitation of "Over 2 ATM locations world wide!"
- I can access my account information from anywhere via Internet
- I write checks once or twice a year, and I can do that online too
- When it comes time that I need a loan, oh once ever 3 or 4 years, I'll worry about it then
- I pay nothing for this luxury.

I'll stick with BoA, mainly because of the ATM's.