Rescuing the U.S. Economy

You've heard the news – the economy is in turmoil. High-risk loans are to blame for ruined banks and an epidemic of home foreclosures. Businesses and individuals are strapped for cash and facing a credit crunch. The stock market's record drops this fall produced stomach-churning anxiety among investors.

From Wall Street to Main Street, everyone wants to know if their jobs are secure and their money is safe.

Big Banks Fail
The big banks on Wall Street fell hard in September, especially those tangled up in subprime mortgage debt. The dust settled after a string of multi-billion dollar buyouts and bailouts. In a bold move to stabilize the housing market, the Bush administration took control of mortgage giants Fannie Mae and Freddie Mac. But that wasn't enough to turn the tide. Plans emerged for a controversial financial rescue package, putting $700 billion of taxpayer money on the line.

The goal is to clean up bad mortgage debt so the economy can run as it should, encouraging quality lending and consumer spending.

Savers: Your Deposits Are Safe
Chaco CU is not vulnerable to the bank failures and takeovers on Wall Street. We are far removed from the risky lending practices that contributed to the mortgage meltdown. Our conservative approach to lending makes Chaco CU a safe place to save and borrow money.

NCUA insurance for your savings is now better than ever. As part of the financial rescue package, the NCUA coverage limit increased from $100,000 to $250,000 for all deposit accounts until the end of 2009.* Also, your board of directors has chosen to provide an additional $250,000 of savings coverage to qualifying accounts through ESI, a licensed property and casualty insurance company. This supplemental share insurance coverage from ESI has been available to credit unions since 1993. Members exceeding the maximum level of coverage provided by the NCUA are insured up to an additional $250,000 by ESI. For example, if a member has a savings account, checking account and certificate of deposit at the credit union that when added together totals $140,000… $100,000 is insured by the NCUA with the remaining insured by ESI. Deposit insurance is provided on a dollar-for-dollar basis and is payable only upon the failure and liquidation of the credit union.

Investors: Stay the Course
The stock market reacts dramatically to breaking news, but that doesn't mean you should bail out of your investments. Overreacting to market dips may undermine your long-term strategy. Remember that the steepest declines are generally followed by the greatest gains. (Past performance does not guarantee future results.)

Now may be the perfect time to tune up your portfolio. Call 513-785-3500 or visit www.chacocu.org.

• Not federally insured.
• Not a deposit of this financial institution.
• May lose value.