PayThink

Stephen Covey's advice, "Begin with the end in mind," provides a good starting point for effective research, and especially the best research methodology to use. In these challenging times, it's important to focus your research investment wisely. And with research, one size truly does not fit all.

I recently checked out the home pages of a number of credit unions and local banks and was amazed to find no obvious mention of the current financial crisis.

We recently interviewed Mr. Arthur Amundson, one of our past board members who served on the board and as chairman from 1952 to 1983. Mr. Amundson recently celebrated his 100th birthday, meaning he was born the same year credit unions were created in the U.S., and shared some of his memories of A+ Federal Credit Union over the years.

The one personal anecdote from my credit union career that reflects the essence of credit unions was when I was Senior VP at Kirtland FCU in Albuquerque, N.M. Among other credit union responsibilities, at that time I had oversight of the member services area. Department staff and member interaction usually involved fairly routine transactions with an occasional special request, but the one request I would never have expected and still remember today as truly reflective of the special nature of credit unions, was one that was made by an older member named Aleda. Although she transacted business at the credit union on a regular basis, she rarely struck up a conversation or asked for assistance from staff. She was very quiet and reserved. Over the years, she placed her life savings in accounts at the credit union.

Watch the evening news (if you can bear it) and it would seem your credit union's lobbies and branches should be anarchy right now. Members borrowing your scissors to cut up plastic cards. Members handing over their keys - to their homes. Members lined up out the door to use your coin-counting machine as they're down to their last dimes. Drive-thrus inoperable because you've parked the repo's there, too.

Higher up this year on the list of things Americans care less about is the latest World Economic Forum meeting in Davos, Switzerland. Are the Davos attendees hatching a plan to use their own money to rescue the global financial system? No. Are individuals among them finally stepping forward to declare their guilt as participants in the credit bubble that led to the global chaos we´re currently experiencing? No. Did some of them arrive in private jets? You betcha.

As anticipation builds ahead of the Obama team´s new rescue plan, a column on Slate.com by Daniel Gross might contain a helpful tip to the architects of the next round of bank rescues: Get rid of the CEOs.

New lobbying rules released today by the Treasury Department may do little more than highlight the mess left over from the early rounds of capital infusions into banks. Following a week of chatter in the media over possible political motivations behind the Treasury´s selection of banks to recapitalize, the agency vowed to adhere to a stricter regimen of transparency in its decisionmaking and to limit banks´ ability to use lobbyists to argue their cases for Tarp funds.

This week, look for progress on the stimulus package, the confirmation of Timothy Geithner as Treasury Secretary, and a possible plan from the Obama administration on how to stabilize the banking sector-again. On that subject, debate within higher-minded circles has focused on nationalization and the troubles it would create. But the Obama team seems to be working on a plan that is centered on foreclosure prevention, toxic assets, and possibly another bailout. Are the nationalization folks getting ahead of themselves? Meanwhile, fights have erupted over various parts of the stimulus package the Democrats proposed. Its fate is uncertain, though its journey is expected to be swift.

Anyone doubting the need for new strategy to combat the economic problems caused by the rising tide of foreclosures need look no farther than daily headlines: "Markets Fall on News of Layoffs;" "Governors Call for $1 Trillion Stimulus to Offset Budget Cuts," "How Will Schools´ Budget Cuts Affect Parents?" These, plucked randomly this week, have become an unending refrain. We can´t waste any more time.