By Jon Cook
For the first time ever there has been a worldwide coordinated effort to stave off financial crisis. The involvement from other world financial superpowers came after the economic shockwaves made by the U.S. hit foreign shores.
This lead from "Central Banks Coordinate Global Cut in Interest Rates" in the Oct. 8, 2008, New York Times, pretty much sums it up:
"Lingering comfort outside the United States evaporated in the last week, as money markets froze up around the world and major corporations and banks across Europe began suffocating from their inability to do even routine financial transactions."
Central banks in Britain, China, Canada and continental Europe have reduced lending rates to ease their own economic downturns. This was the first time in history the Fed coordinated rate adjustments with other central banks.
This response came in the wake of the worst crisis felt by Wall Street since the Great Depression. With any luck, the worldwide effort can pull the U.S. out of its downward spiral and keep other countries more economically stable than the U.S. has become.
Credit unions can take the same approach. It is much easier to weather a storm if you have friends surrounding and supporting you, as CU CEO Tom Randle explained in an earlier post .
Circle the wagons and share what is working and what isn't. CUES is working extra hard to support networking and collaboration efforts via special sessions at CEO Network and is even offering a "pay-what-you-can" plan to make attending this Nov. 2-5 meeting more affordable.
On a local level, get the word out that CUs are safe, as a way to increase deposits and gain trust that will outlast the economic troubles. This is the time for CUs to use their stability to increase membership and market share.
Jon Cook is an editorial intern at CUES.
