Comments on: Buying into a bank http://www.daxdesai.com/2007/08/22/buying-into-a-bank/ High Return Investing with Dax Fri, 18 Dec 2009 10:01:37 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Adventures In Money Making http://www.daxdesai.com/2007/08/22/buying-into-a-bank/comment-page-1/#comment-1811 Adventures In Money Making Tue, 28 Aug 2007 19:07:00 +0000 http://www.daxdesai.com/2007/08/22/buying-into-a-bank/#comment-1811 banks leverage your 'savings' and lend out 9 or 10 times that amount. so a simple 9% loan yields a 50%+ return on "your" savings. the only problem is when too many people default. Then the bank loses its principle too!!!!! Similar to hedge funds, except that banks are more diversified and the FEDs will bail out a bank and not a hedge fund. but once the stock prices look like they're trending up, buying into a large bank is a good idea. banks leverage your ’savings’ and lend out 9 or 10 times that amount.

so a simple 9% loan yields a 50%+ return on “your” savings.

the only problem is when too many people default. Then the bank
loses its principle too!!!!! Similar to hedge funds, except that banks
are more diversified and the FEDs will bail out a bank and not a hedge fund.

but once the stock prices look like they’re trending up, buying into a large bank is a good idea.

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