Tuesday, April 10, 2012

The Bank always makes profits, even when you lose.

Today the Milano Stock Exchange lost 5%.
Always remember if you deposit your savings in a Bank, the only ones who always earn are the Bank and your Banker. When you invest in the Stock Exchange (or in bonds) you can make profits or lose.
You won’t know it in advance but you have a certainty: you always pay your bank fees.
Bank fees are lower if you invest in Treasury Bonds and regular Bonds while they would be higher if you invest in stocks. Obviously there are exceptions but they are very rare. It is indeed quiet right to ask yourself a question.
Who is going to guarantee me that the bank does not invest in stocks while the Stock market is losing?

Remember...the bank makes more money with people who invest in stocks.

With the stock market losing 5% in one day, can you still trust the financial system?

Every day a greater number of people are losing trust in the financial system.

Luigi Foscale

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