I have waiting for someone else to comment on this submital by Alan Baker Schultz. Since nobody has added anything and as yet President Obama hasn't responded I will add something that ties in with the idea of ABS that has an Obama-esque flavor. Since this letter is headed towards the White House I wanted to add an idea I ran into on a website called CommonDreams. It belongs here because it suggests a means by which we all can reinvigorate our local economy in the manner of the bumper sticker encouragment to: "Think globally; act locally."
The following was submitted by Cee Miracles December 13th, 2009 2:17 pm on CommonDreams.com in response to an article about Obama being critical of investment bank bonouses to their employees now that they are back on their feet after being bailed out by the US tax payer:
CeeMiracles wrote: Take your money out of the banks and the investment houses and put your money in local Credit Unions. Credit Unions have a limit, I understand, of how much money they can have, without then transferring funds to banks.
However, if then town boards were encouraged to borrow from the local credit unions and create work right in town ... whether fixing the roads, building low-cost housing and whatever, then the local money would be put to work.
If this were done across the United States, we could collapse the banks. Yes?
This idea hatched in my brain a day or so ago because my credit card banks are now charging me 28 per cent interest.
A friend told me I could join the local credit union and then get a loan with a much lower interest rate and pay off my credit cards. My credit card totals are not that much and my credit rating, even though I have a low income, is fine. I didn't even know we had a local credit union that I was eligible to join.
Evidently I would have to pay $10 to support the local library; $10 as a fee to join the credit union; and then pay $5 to start an account. The credit union pays a small interest on deposits.
Sounds like a good deal to me.
My friend told me the credit union can only have a certain amount of money, but above that they have to deposit it in a bank.
That's when I thought of all the organizations in town wanting to fund things and also how much work is needed around town, but the town budgets can't cover it.
This sounds simplistic initially. After thinking a bit it seems like a sensible, grass roots, way of taking the wealth and power back from multinational corporations/banks and it does it in a manner that would fund local investment.Bring home the debt and you bring home the investment (interest). I had not realized until reading the comment above that we all are underwriting the very corporations whose actions we are railing against. We could just stop investing (we invest in them by doing business with them) in the big boys abroad and instead invest in businesses that provide the same services locally; and credit and finance are basic to every community.
Why not move your credit card debt to your local credit union or local savings and loan companies? Why not attend local credit union and local gov. meetings to suggest that they connect with their local public and private agenices to start a funding system for uninsured health coverage (as an example) and encourage local investment in the local credit businesses so that creation of a public accessible fund can exists and expand.?
Even on an individual basis why can't a small physician's clinic not offer to provide health care to a few people who would have to pay with a creidt card but the clinic would let the patient pay them directly in installments (hopefully with a lower interest rate) rather than pay the credit card company to pay the clinic's bill? The local credit union designated account could provide payment assurance. The local economy would benefit rather than the multinational corporations and hounds of finance. I don't know how local bonds and local lines of credit are structured, advertised or administered. I would appreciate some input/advice on this idea. Is it not possible for a locally financed and funded credit institution then be the source of funding an ever larger circle of local institutions that gaurentee services and underwrite risk like hospitals, clinics, Doctor practices, insurance agencies.?