3 ms·
'Safe banking' is a contradiction in terms. Every time you place money in another organization, their is an amount of risk involved. It only seems like it shoul
by astine 19y ago
'Safe banking' is a contradiction in terms. Every time you place money in another organization, their is an amount of risk involved. It only seems like it shouldn't be risky because the Fed guarantees so many banks and loans. This gives the banks more leeway to make risky loans and artificially shifts wealth around in the economy hurting the lower classes.
Fortunately, it also means that there is more to go around for startups.
- kingkongrevenge 19y agoThis is such an unspoken truth. Depositors and investors have much more responsibility than the media ever pegs them with. I remember being impressed during the Enron thing with how nobody dared point out shareholder greed and ignorance. It was all about a few crooks at the top. Skilling and Lay were the bee's knees as long as the stock kept shooting up, even though there were tons of red flags in the accounting. Investors saw dollar signs and didn't do their homework.
- tim2 19y agoWhat? Why is it impossible for the risk to be negligable?