Financial Humours

 

A Learned Master shared with me:  

Bank is the smartest ~ you keep money with it, it lends out 80%, makes some & give you some. But, if it fails, you loss everything & the Bank restart as a new Bank 

Insurance Co is the biggest scam - everyone pays into a pool & share the risks, with a promise that you will be covered & reimbursed in case of an event happening, eg, sickness. But, if the eventuality happened & there aren't enough to pay, it conveniently folds up

Brokerages [commodity & stocks] provide a safe platform to buyers and sellers for a fee, say 1%. Has it occurred to you that if the transactions continue for 50times, at 1% charge @each transaction, your $1 is zeroised 

[The market capitalization of the U.S. stock market is approximately $62.8 trillion as of July 1, 2025, representing the total value of all publicly traded companies in the United States. If a crisis of sorts happens & the market drops 30%, where did the $18.84 trillions go to? ~ transferred, erased, or...]

Stock markets [indices] are not a mathematical problem where 1+1=2. It is the aggregate of emotional responses to events and happenings

When ideas or opinions are propounded, they are not the 'sure to happen thing' but collections of "IFs" & "BUTs" events; any occurrences will lead to a 'presumably expected conclusion', not lateral though 

No two fairly similar events may lead to a fairly similar outcomes; 9/11, the Oklahoma City bombing 1995, the 1997/8 Asian Financial Crisis, the 2008 Global Financial Crisis, SARs, COVID ... but the magnitude and impact differ vastly

Will the next crisis, if any, be any different? Every financial crisis is about MONEY & it is about the losers vs the winners ~ the transfer of monies & elimination of digits [in everyone's accounts]; nominally your real purchasing power  

I have expressed reservations that WallStreet, with AI-tech, will offer uninterrupted power to drive prices higher but met with "this time it's different" ~ this reminded me that "all bettors at the race course know which horses will win & bet big but after the races, they knew why that anointed horse did not win!" ...

Market is filled with humorous players who are smart & logical but parts with their monies like any fools will