It is a direct indictment of unregulated free market finance that
credit unions - the closest thing to a nationalized bank in this
country are doing extremely well compared to commercial banks.

How come Paulson is not investing in credit unions as a way to
increase lending instead of pouring money into the Wall St black
hole??

http://www.time.com/time/business/article/0,8599,1853174,00.html
-----------------------------------snip
Members-only nonprofit credit unions are having their turn in the sun
as years of sticking to boring, old-fashioned banking practices — they
typically hold the mortgages they make on their own books and only
dabble in subprime — put them in a position to grab market share while
national banks, auto finance companies, credit-card outfits and
private student-loan firms cut back on loans. "In good times, you'd
say these guys are much too conservative," says George Hofheimer,
chief research officer of the credit-union-focused Filene Research
Institute. "But in times like these, it's just what the doctor
ordered."

Credit unions aren't shy about having money to lend. Speed's outfit,
the 126,000-member Texas Dow Employees Credit Union (TDECU), has been
running TV spots since August and is doubling its ad budget for the
fourth quarter. (At times, TDECU has been accused of being too
aggressive: community banks, which have also been faring relatively
well, and the FDIC loudly objected when one ad painted the entire
banking industry as "under a dark cloud.") To meet loan demand, TDECU
is borrowing from corporate credit unions and the Federal Home Loan
Bank of Dallas, but even then "we may not have enough money to go
around," says Speed — especially now that car dealerships, jilted by
the finance arms of auto companies, are flooding the credit union with
calls.


-raghu.

--
"We in the industry know that behind every successful screenwriter
stands a woman. And behind her stands his wife."
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