Posts Tagged ‘depositors’

“Politicians all over the world are predicting that banks will charge depositors (you) money for storing cash in negative interest rate currencies.  It’s a perversion of saving.  It’s a perversion of capitalism.  It’s a perversion of planning for the future.” -Brian Hunt

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.