a mo an

Wednesday, January 17, 2007


Banks = Casinos?

Aren't banks just like casinos sometimes? Just like the gamblers in casinos who are betting on the rules of probability, customers in the banks are doing the same. Equipped with analysis and forecasts churned out by banks and fund houses, the customers would then go into the market to 'gamble' and hope that the market would move to their advantage and hence earning the potential profits/dividends due to them.

Perhaps the only difference is that, for banks, there is always the 'sure win' products such as Fixed Deposits or Fixed-Income Products such as Bonds. However, there would never be any 'sure win' games in casinos.

...the one who's craving for durians now

1 Comments:

Blogger surfers said...

Great analogy! Just like in the casinos, the high-rollers (high net worth) in the bank also have a product for themselves. They gamble in margin trading product.

Wouldn't it be great if casinos could come out with some of the guarantee bank products? LOL.

1:57 PM, February 04, 2007  

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