58robbo

How to Replenish the FDIC's Coffers

government should move toward phasing out deposit guarantees! as a country we have to look at how we define risk. i believe that every single decision we make in life carries a certain level of risk and there are no guarantees. when we deposit our money with a banking institution in exchange for interest, what is the difference?

we should understand that our money is invested for profit and that those invesments carry a risk. the level of risk should be compensated with higher interest payments fro higher risk and lower interest for lower risk. for the truly risk averse, their money should be stored in safe deposit like accounts and they ought to pay accordingly for the service.

another thing we should understand is that once we commit our money, it's commited until someone else buys your position or the loan is paid back.

banks which operate with fractional reserves would tend to be greater risk for greater reward. unfortunately we cannot have our cake and eat for lack of a better term. reward entails risk. ie 1+1=2 not 3

The Reverse-Convert Scam

the problem is that most people do! when they lose their shirts, they then bemoan the lack of govt control, oversight and regulation. The govt is only happy to oblige!
Whatever happened to Caveat Emptor? Whatever happened to a govt which understood that their regulations encourage investor apathy?


On Jun 16 05:27 PM Ergo wrote:

> Yeah, I don't buy things I don't understand. Good article.