Until about 10 years ago, banks were basically satisfied with their usual business, taking deposits from the public and lending it out to credible users. But in order to dramatically increase their profits and justify hundred-million dollar paydays, they had to enter a new business. Big time gambling under the rule: Heads: I win. Tails: […] (more…)
The world of investment is presently covered in a cloud of doom and gloom. We’ve heard some details: Crazy lending practices, wild speculation, risks out of control. The damage is yet unknown, in a worst case scenario it could be trillions. Apparently this situation calls for maximum risk avoidance and a flight to safety.
Any arguments […] (more…)
There are a lot of noises coming from the attic. Stocks go bump overnight and panic-stricken investors are leaving the haunted house. The Dow has “only” fallen by about 15 % from last year’s highs but it feels like more. Some widely-held shares, mainly from the finance and high-tech sector, have been cut off at […] (more…)
When people lose money it’s most often not really lost. It has just been transferred to somebody else, a crook, a thief, a gambling lord, the government or an ex-wife. So, where in fact has all the money gone which banks claim to have lost recently through bad lending practices? Not a day passes by […] (more…)