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Anonymous
Banks should be money machines 2016-07-20 18:52:59 Post No. 1393654
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Banks should be money machines 2016-07-20 18:52:59 Post No. 1393654
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Seriously, how are banks not the ultimate investment?
>leveraged as fuck, while almost always being protected from failure by government
>run by people whose very job it is to make the ultimate high yield investments
In a major bank the RoE should be through the roof. And yet, most banks don't seem to have higher growth or dividends than businesses of any other sector. Could someone explain this?
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>>1393654
Because most are just paying out their key employees with huge bonuses and when shit hits the fan that leverage really hurts them. Banks don't really care about their customers or inventories because they have all of the control.
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It takes 20 million to start a bank. When you have that kind of money to toss around you're free to start anything from a factory to major real estate development.
Also you're really not seeing costs there, starting up takes a good chunk of change in the form of licensing, insurance, salaries, and extremely expensive facilities.
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>>1393654
I guess you don't follow the EU markets OP.
European court just ruled that when a bank is nearing insolvency and bankruptcy ALL of its shareholders and creditors (!) can be stripped of their assets before a government is allowed to inject more money into it.
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