Category: Saving

Optionality and anti-optionality: Part 2, Loan + Insurance = Lower risk

28 July, 2014 (08:36) | Banks, Economics, Finance, Foreclosure, Homeownership, Housing, Lending, Loans, Optionality, Rental, Saving, Theory, US News |

[Continued from last week’s Part 1.] By: David A. Smith When you’ve got enough to take care of yourself, more claim checks don’t do you any good. But they can do a lot of good for all kinds of other people. – Warren Buffett As we saw in yesterday’s Part 1, the Economist’s (May 17, […]

Optionality and anti-optionality: Part 1, reward later or reward now?

25 July, 2014 (09:36) | Banks, Economics, Finance, Foreclosure, Homeownership, Housing, Lending, Loans, Optionality, Rental, Saving, Theory, US News | 1 comment

By: David A. Smith Money is a claim check on other people’s products and services. – Warren Buffett Once a month, Mrs. Guggenheim sends the bank the same amount of money.  Darling, if you have to ask the price, you can’t afford it Is she saving for herself, or repaying a debt? Either way, her […]

Banker’s breach of trust: Part 3, Who should pay?

17 October, 2012 (09:17) | Banks, Deposit insurance, Deposits, Equity, Eurozone, Global news, Greece, Regulation, Saving, Spain, Speculation, Trusts |

[Continued from yesterday’s Part 2 and the preceding Part 1.]   By:David A. Smith   Two days ago, working from a recent Wall Street Journal (October 7, 2012) article,  we encountered millions of Spanish depositors defrauded(**) by banks in which they placed their trust; and yesterday we saw that the deceit was structural, running from […]

Banker’s breach of trust: Part 2, Who is guilty?

15 October, 2012 (16:29) | Banks, Deposit insurance, Deposits, Equity, Eurozone, Global news, Greece, Regulation, Saving, Spain, Speculation, Trusts |

[Continued from yesterday’s Part 1.]   By:David A. Smith   Yesterday’s post using a Wall Street Journal (October 7, 2012) demonstrated the proof that Spanish bank depositors were defrauded at a massive scale by being sold ownership shares in the banks themselves under the guise of making deposits.  Apparently (small comfort), this particular fraud scheme […]

Banker’s breach of trust: Part 1, who was robbed?

15 October, 2012 (16:26) | Banks, Deposit insurance, Deposits, Equity, Eurozone, Global news, Greece, Regulation, Saving, Spain, Speculation, Trusts |

By:David A. Smith   So many are the banks whose name include the word ‘trust’ that we have become dulled to its meaning, liberally substituting ‘trust’ for ‘bank’ when in fact the one does not guarantee the other, as shown in this alternately tragic and outrageous story from Spain reported in the Wall Street Journal […]