I wouldn’t give it another thought. The local bank and CU’s are not who is in trouble here, credit unions and mortgage lenders are different animals entirely and the last decade has seen the explosion of mortgage backed securities so your local bank or CU is not holding a lot of local home loans. Hedge funds, foriegn investors and mortgage banks have the short end of this stick. Your credit union probably has more car loans on their balance sheet than mortgages and for good reason, their mortgage rates suck and have always sucked.
We are nowhere near mattress time, CU’s are conservative for the most part, so sleep well. If the CU’s and main street banks were to all fail then it wouldn’t really matter if you got your money back because it would be worthless anyway. A little perspective here, many components of the economy will have some short term pain but the real pain is in the non traditional mortgages originated in the last four years. When real estate falls to affordable levels the pain for the rest of the economy will end, people will buy again, commisions will be made, carpeting sold again, home depot will be busy again. It’s just a cycle, not the end of the world. Break out your “It’s a wonderful life” DVD, in the end it all works out.
