i> Away With The Fairies.: November 2008

Saturday, November 15, 2008

Emperors New Clothes.

Call me naive, but I thought what qualified banks to do what they do, is because they have shit loads of money.

They don't.

Apparently, all they have is a net work of staffed and fitted, posh, secure, buildings. The systemic ability to record, transfer and add or subtract interest to money, and that's it! That is what constitutes their entire assets.

No actual money.

In fact, they are completely skint. Boracic.

Worse than that, they're in debt. Seriously in debt.

Now to me, being seriously in debt, means owing say, 5 times my assets. Yet for banks, this is a mear bagatelle. They owe as much as 30 times their assets!

Ask yourself this, if you had a life long, reliable friend, who owed 30 times their assets, and they asked you for a substantial loan, would you question it? Would you at least hesitate before handing over the crinkly folding stuff?

Of course you would question it, and yet we seem blinded by the smoke and mirrors presented to us by banks.

I'm amazed anyone gives them money to invest, they are unqualified to handle your money. They rely completely on your confidence.

Like fairies, if no one believed in them, they'd all die!

In light of this, I'm no longer surprised that some have suffered a 'run'.

What amazes me, is that we gave them our money to invest in the first place.