Brexit Continues Great American Recession in Consumption
American Consumer Continues to Stockpile Money in Checking
(Lake Forest, IL June 24, 2016) Over 320 of the 385 Great Britain government bodies voted to leave the European Union (EU). Michael Moebs, Economist and CEO of Moebs $ervices, said, “This is a general uprising in Great Britain by the common citizen. The average Brit did not want their electronic tea pot regulated by some EU bureaucrat in Brussels or Berlin. Isn’t this what the followers of Bernie Sanders and Donald Trump are saying when they don’t want Washington to regulate what electric light bulbs they can use?”
WHAT CREDIT UNIONS AND THEIR MEMBERS NEED TO WATCH
The Moebs $ervices Economic Research Firm has compiled the following questions for credit union management and members to answer in the new era of a Great Britain separate from Europe for the first time in over 40 years:
1) The average American consumer has over $6,500 in checking. They have nowhere to put money or even earn a decent interest rate and the Brexit has only added to their uncertainty. Credit Unions need to be very cautious about their checking accounts that have above average balances. Doesn’t the member has the potential to move some or all of their money to a competitor?
2) Bond markets will be in turmoil for the summer; is this a time to take advantage of selling or purchasing any investments for the credit union and taking a profit or loss while cleaning up the balance sheet?
3) Is the uncertainty in markets and exchange rates sufficient to keep interest rates unchanged?
4) How many employer groups are tied to goods and services that are sold or purchased from Great Britain? These employer groups must watch the change of the pound’s value to the dollar. The change in value will have implications to the revenue and costs of these goods and services. It will also be important to track goods and services from Scotland, who may vote for independence again from GB and stay in the EU.
5) Are there any credit union members or employees who have students in Great Britain and may need financial support with the value of the pound falling? These may include: air fares, tuition, room and board expenses.
6) Does any member need assistance with autos purchased but not delivered produced in Great Britain or with ownership of a Great Britain company?
7) Are any members scheduled for vacation tours or cruises to Great Britain who may need currency exchange assistance?
Written By: m.moebs
Date Posted: 6/27/2016
Number of Views: 1348