Are the Credit Unions the 1980's Savings and Loans?

written by: Andy Watkins - BD editor

The credit arena is getting more and more tight as the bank regulators and the federal banks keep making statements of future slow downs and major write offs of billions of dollars from consumers. Do you remember the 1980's when hundreds of Savings and Loans closed their doors and the Federal government came in and help bail out many while others lost everything. Well now we have a new group that are under threat and that is the current credit unions across this country. On average 3 to 4 banks close each year, but not the prediction is that over 100 to 200 banks will close and most of them small banks or credit unions.

What should you do if your with a small bank or credit union...nothing if you just have savings or a checking account because that's insured for over $100k, but if you are invested in the stocks or a mutual fund you might want to protect your money and speak with your financial advisors from some short term and long term protection of your investments before it's too late.

Does that mean that all Small banks or Credit Unions will go under...NO...but many of them count on the larger banks and their cash flow is tightening everyday, which means the available monies will not got to small banks or credit unions to loan out, which means they won't make any money and will have to sell their existing loans to keep their doors open.

It's a different world we live in and it's time to relook at your portfolio and make sure your not opened for a complete wipe out.