Stocks-Banks

The politicians should quit regulating banks until they have someone that understands Banking.

What is the purpose of a local bank. In the old days the bank was a business that had a vault where you could put your dollars to protect them from robbers. Being a business the bank must earn $ to pay for guards and other costs. To pay these costs they allowed the bankers to make loans for good causes in the community.  We have evolved into banks that now make international loans as investment bankers, using retail depositors money with FDIC insurance and other regulators 

When I was in banking years ago we had local retail banks with international desks operating out of the headquarters. That desk did not use depositors $$. They primarily did over-night Money transfers between other National Banks.

I believe we should go back to those times and separate the types of banks, International Investment banks versus Local (community) banks. The Local (retail) banks have FDIC insurance and other reserve requirements.  No such insurance for Investment banks. They have shareholders and if they lose money it does not effect the Citizens or the Government since there is no insurance and no exposure. 

Comments?

Jimk

Should have "sold in May and gone away"

Well as we all know by now that was good advise.  You know I never took it last year either.  I'm told that if you keep doing the same think over and over and expect a different result, that it is the definition of insanity.  Please keep that in mind with anything written in this blog.

Markets

It appears that the Market is on hold waiting until Wisconsin elections are over, Than it will drop as soon as Spain goes to Lunch. 

Seems very soft and Avg investor is in Cash, just waiting.  Strange for an election year.

--->Jim