Danger of investing in banks: sobering article from Southbank Investment Daily / MoneyWeek

This article reached my inbox this afternoon, and I felt it sufficiently relevant to share. It’s about an emerging danger for those investing in banks. Definitely worth a read.

(apologies to those on mobile devices!)


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Just one point , most banks have huge chunks of the money in mortgages and investments and returns and risks are directly connected to the global economy,

Monzo on the other hand has raised money on their plan to be more of a marketplace

But the article does make some valid points

Got bored.

Do a tl;dr please.

You’re doomed.


tl;dr, if the banks crash then you’re fucked.

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I do agree with your points. I’m an investor, and have invested in each round. However, I do always feel it’s worth reading whatever material’s available - since hearing a contrary opinion helps to build a balanced viewpoint.

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Only if you’re able to properly assess the qualifications of the writer.

Who’s Nick Hubble and how do you know he knows what he’s talking about?

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Fair enough. I see his job as raising questions in my mind. It’s then free for me to find out who he is and look up the truth in what he’s saying - and whether it applies to my holdings (for example, in 2008,HBOS I would have lost my HBOS shares, but survived relatively unblemished with Lloyds - at least until Lloyds bought out HBOS)

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That letter is like trying to read Ulysses crossed with the dog from Up. :dizzy_face:

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As I seem to be saying quite often, at a lot of this was already seen in 2008. Watch the “Big short” it will show that in actuality a lot of governments just don’t care


Colour me sceptical of anyone claiming “EU law lets banks ignore all legislation and regulation and take your money!” without actually citing any EU acts (which should go for any ‘the EU forces you to do X’ claim, really).

Then there’s the rather quixotic idea that in order to ‘bail out’ banks to prevent loss of consumer funds (due to fractional reserve banking) the banks would use… the same funds they are too short on reserve funds to pay back in the first place. It’s not even Robbing Peter to Pay Paul, it’d be Robbing Peter to Pay Peter!