Posts Tagged ‘arbitrage’

One of the main strategies of the banking industry can be described in the term arbitrage.  Basically, it is the difference in the interest they collect from their loans and the interest they pay their depositors.  Most of the time they are doubling their money, many times more.  Knowing this simple, but very effective, tactic, why not turn the tables and follow the bank’s own business model.  Pay yourself arbitrage; pay yourself like the bank pays itself.