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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (67258)	4/26/2021 1:47:04 PM
From: petal	Respond to of 79045

Still we all use them, don't we? And I'm not saying i like it, but I think they will be around for hundreds of years still. Maybe they'll change form slightly, but the basic concept will stay they same. There's a reason why the gov't won't let the big banks fail; and there's a reason why if I would go looking for a loan, I'd start with the big national banks, then the regional ones, then the shittier ones. (I think there are interesting investment opportunities in all these categories!) ____________ I agree that big banks has a huge advantage in that they can basically take all the risk in the world safe in the knowledge that the FED & gov't will always have their back. You can go about it two ways: 1) Take huge Russian roulette type risks, make humongous amounts of money for a while, cause a crisis, risk bringing the global economy down, take some massive one time charges, wipe out your equity, file for bankruptcy in all but name, get gov't support, get gov't bonuses and start all over again. 2) Be (relatively) prudent, stay away from the most dangerous stuff, possibly avoid the liquidity crisis when the above bank causes it, be relatively unscathed when gov't says 'enough is enough'; never lose money ever, make decent but not outlandish returns pretty much as risk-free as gov't bonds.