Confidence In The Banking System Is Paramount – Can We Trust Those Entrusted?

Our banking system is not without risk, but how safe is our money in the bank these days? Are bankers taking the proper precautions or taking too many risks? As we watch our devaluation of the US Dollar and the downward slope into recession, while simultaneously dealing with a credit crisis in real estate, low consumer confidence and ultra-high energy costs – the question has raised its head once more.

Is our money in the bank safe? Well, to answer this question, I would like you to consider an older work of note, that I recommend that your read before you discuss this issue with any conspiracy theorists about our civilizations banking system collapsing. There is good and bad discussed in this book and the warnings are indeed relevant as well:

“Money in the Bank – How Safe is It?” by A. Robert Abboud, William G Schopf and Geoffrey N. Smith – 1988. Sanctioned by the Bank Administration Institute.

The authors explain to us how bankers are often enticed to take unnecessary risks by lending money on questionable ventures. They also explain why banks and financial experts keep repeating the same crisis issues over and over again, they attempt to help us understand why regulatory bodies seem to not be able to keep a handle on them and how politics and money run in circles.

The book has a serious dialogue about how bank boards have corporate executives sitting on their boards and how this incestuous relationship is nearly as bad as the political aspects of banking in America. The internal financial mechanism in many commercial banks is broken and out authors explain how this happens so often. The off-balance sheet obligations of banks in the 1990s is also discussed at length.



Source by Lance Winslow

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