Those Deep Ones

"Mr. Darling used to boast to Wendy that her mother not only loved him but respected him. He was one of those deep ones who know about stocks and shares. Of course no one really knows, but he quite seemed to know, and he often said stocks were up and shares were down in a way that would have made any woman respect him."-J.M. Barrie, Peter and Wendy

Bankers Are Always Busily Engaged Preaching the Homely Virtue of Thrift

This segment of an essay by economist Alvin H. Hansen from the 1920 book The New American Thrift, reminds us that there was a time when bankers were in the business of promoting savings, not pushing credit cards and other consumer debt.

This one was from 1915.

In 1913, Bankers Magazine ran a long article on the "Nationwide Thrift Movement."

On every side we see signs of a great awakening Editors in their newspapers are pointing out the necessity for conservation and clergymen in their pulpits are preaching the folly and criminality of waste The idea that greater thrift is essential in private life in business life in the home the school and the workshop is slowly but surely taking root In order to foster and encourage this great work the American Bankers Association has invited GY Clement originator of the idea of observing February 3 of each year as National Thrift Day and Chief of Staff of the Collins Publicity Service of Philadelphia to cooperate in the Nation Wide Thrift Movement With this end in view Mr Clement has recently perfected a textbook for use in the inauguration and operation of a community thrift campaign This text book or Plan A as it is called is at once a most unique and original plan As far as a thrift campaign is concerned it can have no serious rival inevitably it must make and maintain a position of its own.

The article goes on to describe a coordinated marketing campaign designed to promote thrift.

Plan A provides a scientific publicity movement initiated by bankers and then permanently continued by public spirited citizens in every walk of life It points the way by which may be secured the necessary co operation of the local newspapers the clergy employers of labor principals of schools, scoutmasters of boy scouts etc. These co operating in turn with the local business association board of trade the YMCA and women's club represent a force that cannot fail to exert a mighty influence for good on behalf of any community.

It included posters:



And even sermon topic ideas to pass along to local preachers:

It has been recommended by the American Bankers Association and will commend itself to every banker who gives it his consideration The text book demonstrates how easily a group of public spirited citizens may be banded together in a productive thrift campaign and how with a little effort and a small expenditure of money the seed of a bountiful harvest for the community at large may be sown Plan A puts the banker shoulder to shoulder with the people and bridges the gulf that too often exists between him and them As a result of its campaign of education it creates greater confidence in both the bank and the banker and clears the track for great results.

Mortgage Bankers Association Can't Pay Mortgage

Foreclosure filings of all kinds - delinquency notices, auctions sale notices and bank repossessions - were up 112% during the first three months of 2008 compared with the same period a year ago. Community advocates and policy makers are worried that the problem will worsen as the interest rates on as many as 1.8 million mortgages reset this year. (Source: CNN Money) Is there any good news for the family facing foreclosure? Maybe this will help:

The Mortgage Bankers Association-- the folks that came up with the great idea of giving adjustable rate mortgages to people who couldn't afford them-- are having trouble paying their mortgage, The Washington Post Reports.

"A year ago, the Mortgage Bankers Association was thrilled to sign a contract to buy a fancy new headquarters building in downtown Washington. Interest rates were low, the group's revenues were steady and the prospects for quickly renting out part of the structure were strong. But since then, the association has fallen on tough times as many of the subprime mortgages dispensed by some of its members proved dicey. Borrowers discovered the loans were more costly than they had anticipated. Foreclosures soared, and cheap, inexpensive credit dried up, slowing the economy. The result: The trade group is about to find it harder than it imagined to pay its own mortgage."

There don't seem to be many tears shed for the professional organization.

"They are certainly getting what they deserve," Dean Baker, co-director of the Center for Economic and Policy Research, a liberal research group, was quoted as saying.