the use of a bank nowadays

last SG · 2008-03-16T16:34:54+00:00

For DBS he will be working at Singapore's downtown Shenton Way, where during an earlier stint he met his wife, Koh Li Peng, a top model who earned the tag of...

fox_hound_33 SG

"Well, you loan your money to your bank and in turn, the bank loans them to your employers for their business needs and they pay you a salary. They charge a higher interest for loans as they are taking on more risk and give you a lower interest because the bank itself as a counterparty, has a lower risk. If you want to get better interest, you can loan your money to businesses directly by purchasing bonds/bills or even shares"

Most believe are made to believe what you had just said. To really find out how banks issue loans and make money, look at the following video.

http://youtube.com/watch?v=ThXpjmfyiMQ

balance_else_complacent SG

I am beginning to suspect,

bank owners are the smartest people:

1. people just give and give them their salaries every month.

2. they just use this gigantic sum and able to afford the best to help them invest.

3. what does the boss need to do?

ha ha!

i think bank customers should find out how to get more value out of these investors.

balance_else_complacent SG

Jus waiting for the day they charge for Atm use.... anything to make money will do...

already, for a long time, banks have been charging for atm use. like 50cents per withdrawal.

good money.

balance_else_complacent SG

banks have better security wat

can dunnid put cash at home

anytime anywhere

what can loan shark do?

anyone can offer this service as long as everyone put salary into his bank.

what is so difficult about that?

balance_else_complacent SG

wow, what is the criteria to legally own a bank in sgpore huh?

I think it is the best business to run . It collects money like giro receiving monthly salaries from millions of people. Then, they hire some wise guy and do the investing.

I think the really smart in sgpore should combine their money together and form a bank. That is the retirement plan for the rich.

money controls the world.

what do you guys think of my logic?

kramnave SG

Most believe are made to believe what you had just said. To really find out how banks issue loans and make money, look at the following video.

http://youtube.com/watch?v=ThXpjmfyiMQ

Duh !! Thats not the gist of the statement.....

maurizio13 SG

there is no better way of keeping money than putting it in the bank.

Any other form of investing your money is just trading along the risk/reward curve.

In other words, you're not getting better returns. Your EV should be exactly the same, just with corresponding higher real returns and it's coupled risk.

Depends on your temporal preference model actually.

Before one talk about risk/reward curve, one should consider if the interest rates can even cover the inflation rate.

Are you sure you learnt finance? Obviously you have no idea what you are talking about when you said,

"Your EV should be exactly the same, just with corresponding higher real returns and it's coupled risk".

You obviously haven't heard of MV despite spending so much money abroad.

It must have been a low profile university.

You should continue to put all your savings in the bank. According to you, the expected value (EV) will be exactly the same.

Now we now the reason for your failed analysis in all the threads.

eagle SG

already, for a long time, banks have been charging for atm use. like 50cents per withdrawal.

good money.

deathbait SG

Depends on your temporal preference model actually.

Before one talk about risk/reward curve, one should consider if the interest rates can even cover the inflation rate.

Are you sure you learnt finance? Obviously you have no idea what you are talking about when you said,

"Your EV should be exactly the same, just with corresponding higher real returns and it's coupled risk".

You obviously haven't heard of MV despite spending so much money abroad.

It must have been a low profile university.

You should continue to put all your savings in the bank. According to you, the expected value (EV) will be exactly the same.

Now we now the reason for your failed analysis in all the threads.

the EV SHOULD be the same

SHOULD. In a perfect free market.

I'm not sure you took economics either.

And btw , my degree was in comp sci. I'm just working in the financial sector now. What's YOUR excuse for incompetence?

Btw, EV does not take in account retardation factors such as inflation. Do you even know what Expected value is? Anything above the risk-free interest rate carries risk for greater rewards. Investing is such an activity. Since when is there a written guarantee that you have to be able to break even with inflation? If that were the case, inflation would not be a problem at all.

No, I must confess your MV is a mystery to me. Perhaps you would like to enlighten me?

eagle SG

the EV SHOULD be the same

SHOULD. In a perfect free market.

I'm not sure you took economics either.

And btw , my degree was in comp sci. I'm just working in the financial sector now. What's YOUR excuse for incompetence?

No, I must confess your MV is a mystery to me. Perhaps you would like to enlighten me?

MV = marginal value?

deathbait SG

that was my first thought too.

but it just didn't seem to fit in that context.

maurizio13 SG

the EV SHOULD be the same

SHOULD. In a perfect free market.

I'm not sure you took economics either.

And btw , my degree was in comp sci. I'm just working in the financial sector now. What's YOUR excuse for incompetence?

No, I must confess your MV is a mystery to me. Perhaps you would like to enlighten me?

Expected value (EV) should be the same?!?!?!

Have you provided proof from your calculations or is it your guess again?

Obviously you lacked knowledge of MV in Finance. If you have no idea what MV is, go asked the colleagues in your company.

Since you already agree that your EV or risk/reward curve does not take into account inflation.

I believe that you would no longer have any contention with my original statement of,

"Before one talk about risk/reward curve, one should consider if the interest rates can even cover the inflation rate".

Which authority controls the exchange rates and bank rates in Singapore?

Don't be daft, of course I know what EV is, else I wouldn't have the slightest idea what it is, when you first used the term EV without explanation.

I responded telling you that it's Expected Value.

Else I would be looking dumbfounded like you right now, trying to figure out what MV is and begging an explanation from me.

Don't you find it strange that a graduate in Computer Science, talking with such boisterous confidence and authority in Economics and Finance,

when no proof of competence was inherent.

***I have this strong feeling that your colleagues will most likely tell you it's Market Value. Hahahahaha..................

Happy shifting bits and bytes.

Ed11790 SG

what is the average interest rate for most bank?

deathbait SG

Expected value (EV) should be the same?!?!?!

Have you provided proof from your calculations or is it your guess again?

Obviously you lacked knowledge of MV in Finance. If you have no idea what MV is, go asked the colleagues in your company.

Since you already agree that your EV or risk/reward curve does not take into account inflation.

I believe that you would no longer have any contention with my original statement of,

"Before one talk about risk/reward curve, one should consider if the interest rates can even cover the inflation rate".

Which authority controls the exchange rates and bank rates in Singapore?

Don't be daft, of course I know what EV is, else I wouldn't have the slightest idea what it is, when you first used the term EV without explanation.

I responded telling you that it's Expected Value.

Else I would be looking dumbfounded like you right now, trying to figure out what MV is and begging an explanation from me.

Don't you find it strange that a graduate in Computer Science, talking with such boisterous confidence and authority in Economics and Finance,

when no proof of competence was inherent.

***I have this strong feeling that your colleagues will most likely tell you it's Market Value. Hahahahaha..................

Happy shifting bits and bytes.

you talk so much and understand so little.

Your argument only stands if you agree the market is not a free one. In which case, all bets are off, because that's the basic assumption behind all theory.

EV has to be the same for a perfect free market. That is the basic characteristic. You can rant all you want about making free profits in investments. End of the day, if you don't understand the risk/reward curve tradeoff, you're just deluding yourself.

maurizio13 SG

you talk so much and understand so little.

Your argument only stands if you agree the market is not a free one. In which case, all bets are off, because that's the basic assumption behind all theory.

No point for me to teach you at my expense for your benefit.

If you choose to think that the expected value for savings interest rate is the same as stocks, so be it.

You have yet to ask your colleagues in your finance company for their interpretation of MV.

Here's another clue, maybe it will ring a bell.

The graph is entirely my contrivance, I have removed the labels for the X and Y axis to make it more interesting for you.

I am sure those who studied Finance will know what I am talking about.

It sure looks like the man logo doesn't it?

balance_else_complacent SG

lets not fight.

lets help enlighten one another.

thanks for all your infos.

lets focus on our public enemy #1.

happy holidays.

redDUST SG

lets focus on our public enemy #1.

........& that would be.................

walesa SG

being a layman,

i have this wild thought how to improve the situation:

1. since banks IR so so low, why not put in overseas banks?

2. if there are overseas good banks able to pay more interest, can we lump together many people's money into 1 big sum and put into overseas banks that give more interest and earn more interest using a combined account?

But i worry that like this, local banks will go kaput.

but then again, if this happens the banks might react to retain the 'talents'.

Your concern could be addressed by purchasing treasury bills/notes which are effectively risk-free (so long as you buy those in civilisations that are remotely human :P ) - treasury bills/notes effectively pay you the interest upfront and the rest at maturity.

In addition, should circumstances change favourably prior to maturity, you could always trade your bills/bonds (known as securities trading) OTC, which effectively locks in your profit.

deathbait SG

No point for me to teach you at my expense for your benefit.

If you choose to think that the expected value for savings interest rate is the same as stocks, so be it.

You have yet to ask your colleagues in your finance company for their interpretation of MV.

Here's another clue, maybe it will ring a bell.

The graph is entirely my contrivance, I have removed the labels for the X and Y axis to make it more interesting for you.

I am sure those who studied Finance will know what I am talking about.

It sure looks like the man logo doesn't it?

ok, i have admitted i don't know what you're talking about and you want to milk it.

Fine. I WILL ask my friends about it. Sheesh. I guess we know who's on the ego trip and who's really contributing now.

Still, I would be very surprised indeed if anyone tells me of an economic principle that would cause a difference in the EV between investing in shares and putting it in a bank.

storywolf SG

Banks of today are here to create the crisis to the world.

The banker bonuses which encouraged excessive risk-taking which cause the financial crisis today.

They basically gamble - as it paid they to gamble - when they win they walk away with huge bonuses, when they lost - they do not share the lost !!! Even if they lost their job, they already walk away with larges sums that they win earlier.

The banks change the practise, hold back the bonus for a certain period of years, and if loss for the following years, their bonus is reduce, thus if they are make to share the gain and lost .

« Previous Page Next Page »