Unlike the big banks, credit unions are not owned by shareholders, who are looking for maximum quarterly profits, but by members, who are looking for stability and service. Since their goal is not to maximize short-term profit, credit unions by and large steered clear of risky subprime loans. As a result, their balance sheets could pass the Geithner stress test just fine.Critical for a few reasons, 1) to bring into question the legitimacy and/or relevance of the modus operandi of publicly traded companies, 2) in the real estate industry this confirms my opinion to some extent that the scale of individual projects will be much smaller in the architecture and real estate industry based on lending ability of smaller banks (which is good) IF the redevelopment and rebirth of our cities is done as a series of many smaller projects leading to more regionalized, incremental, and if you will, fractal growth. And lastly, 3) how is this idea of long-term interest and cooperation applicable elsewhere?
Here is potentially one answer: Organic, Local Grocery Co-Ops.