The Geography of Job Loss

The Geography of Jobs

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My mother sent me this the other day- a rather stunning graphical representation of the damage that has been wrought on the job market in this country over the past few years. I strongly suggest you check it out.

We're Still Breathing: MAC and US Small Banks

Yes indeed we are; many apologies for the lack of activity over the past few months. Not a single post as we began our new presidential term- perhaps we were waiting with baited breath, as you no doubt were, to see how things were beginning to shape up. Or, perhaps we didn't have internet and got bit by the lazy bug. Who knows... either way, we're still calling, so hopefully others are still reading. Right now, I'm stuck in Kansas City MO, after missing a flight out last night by a few minutes. I'll be on here all day, and figured this would be a good time to kick the tires again, get re-started and re-launched.

So in a way, this post serves as a reminder, not unlike the one that small, community banks across the US are clamoring to remind customers. As detailed in a recent article by the New York Times, many community banks are on rock-solid footing as their larger, more speculative brethren are stumbling their way into federal ownership.

The difference between the two business model is so radically different from the larger investment banks, and by extension contemporary American capitalistm, that 'night and day' does not even suffice. The opposites are so polar as to be stunning:

To spend time with these Indiana community bankers is to step into an alternate universe, where everything sounds a little strange because it makes perfect sense. You hear things like, “If you don’t understand the risk you’re taking, don’t take it.” And, “We want to be around for decades, so we’re not focused on the next quarter.”

Forget “too big to fail.” These banks consider themselves too small to risk embarrassment. They are run by people who grew up in the towns where they work, and their main fear is getting into a financial jam that will shame them in the eyes of their neighbors.

The steep profits earned by national banks didn’t turn their heads in the last decade because they were inherently skeptical of double-digit growth rates.

“We like a nice, gentle, upward slope,” said Donald E. Goetz, the president of DeMotte State Bank, an 11-branch operation in the northwest part of Indiana.

“This kind of growth, like you see in the stock market” — Mr. Goetz ran his hand through the air, tracing the shape of a mountain range — “that doesn’t interest us.”

It is indeed a sad, sad state of affairs when prudent economic practice, accountability to your neighbors and community, and sound decision making eying the long term has become uncommon and noteworthy. Did we all get caught up in the go-go-go of investment banks and credit cards and home loans so strongly that we left our wits behind us? It just might seem that way.

So I'm wondering- is it time to relocate our funds and savings from the massive banks to community banks? They are just as insured as the big ones, so that is not a worry. My only concern is, do they use the same services? My experience with a smaller bank (relatively speaking) was Commerce Bank, located in Missouri/Kansas/Iowa. I found it a great experience, with a true understanding of what their customers needed, prompt attention to concerns and strong support. If that is anything like what smaller banks have to offer, I'm on my way right now. My main bank just got bought out by Wachovia... and you better believe, I still have that Commerce account open.