Move Your Money

I thought I’d pass along this idea. As many of you know, part of the reason that the financial crisis of 2008 was so severe is that many many banks were really highly leveraged-sometimes as much as 40$ out for every dollar kept on the books, which meant that smaller shocks to housing prices led to bankruptcy. Another problem was that banks were selling mortgages to people that were unaffordable, or whose payments would balloon to an unaffordable level quickly. The government is working on a bill designed to deal with this, but I always prefer to combine my activism with more personal, concrete solutions.



One thing we as individuals can do is invest in banks that have better business practices, and make their money through closer customer relationships. The Better World Shopping Guide suggests that changing your bank from an international conglomerate to a local bank that invests in poor neighborhoods is the number one thing you can do to help the planet. One useful tool to help think about where you might move your money is http://moveyourmoney.info/ a movement sponsored by IRA, the Huffington Post, and the Roosevelt Institute that gives a sense of the most secure local banks and credit unions in a given zip code.

The Bible is often a little worried about bankers-neither a borrower nor a lender be, give to those who ask without expecting repayment, not to mention the general prohibition on usury (as an aside-this prohibition is the reason that Jewish people ended up with the pernicious reputation as money grubbing bankers. In that in the Middle Ages, Christians were not supposed to charge interest, so that very necessary task of keeping money flowing in a society fell to the only religious minority in the culture. I don’t need to tell you that this reputation has led to some long lasting and very evil side effects). I don’t think that banking itself is sinful (what is the story of the talents if not a commentary on the value of investing?) but I do think it is a good idea to pay attention to who is banking well, who is investing in underserved communities, and who is making money by skimming off the top of the system.

Just a thought for a possible resolution for the new year.

Any other good resolutions you’ve thought of?