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No. Financial institutions do a LOT more than just speculate and invest. They also handle and manage capital for everyone from consumers, businesses, enterpris
by taligent 14y ago
No. Financial institutions do a LOT more than just speculate and invest.
They also handle and manage capital for everyone from consumers, businesses, enterprise to other banks. And capital is every bit a tangible resource as something like electricity is.
I personally was outside the Northern Rock branch in the UK when it went under. Over 3/4 of the people in line were scared and worried senior citizens. People forget that financial institutions affect EVERYONE.
- toyg 14y agoThere is institution and institution. The problem with Northern Rock and friends was exactly that they were playing recklessly with "senior citizens' money"; in a better world, that sort of reserve would be handled by a different entity with stricter, more conservative policies than you'll find in a "grow at all costs", ambitious little company.