No. They were hardly successful. In fact, there were dirt poor because the education system was reserved for the elite. They may have had the genetics for Banking or Finance but they were force to swing hammers and other tools to survive. No education will do that to you. Lincoln and Einstein were genetic flukes.
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Bank deposit question
- Thread starter kandlekid
- Start date
M
morganist
Quote from DontMissTheBus:
I meant you failed in trying to switch your argument around so that we don't focus on the absurdity of your initial, actual statements.
I don't know whether you have failed in life general. Apologies if I mislead you in thinking that I cared.
So hard. You are a bit of a bitter person aren't you.
That being the case, I think you would really enjoy reading the Yogananda book I mentioned earlier. If you choose to read it be patient because it doesn't get good until you are nearly 1/2 way through it. If you read it and practice it I promise you will not be sorry.
Quote from morganist:
Thank you. I think that I am defintely supposed to be a banker or economist though. It is my art, passion or soul. I got a shock when I found out about J P Morgan. I never really new much about him. Then I wrote my work and someone assumed that morganisteconomics was linked, I found out that my family members look like his family and that it is a huge banking dynasty perhaps surpassing the Rothschilds.
M
morganist
Quote from the1:
No. They were hardly successful. In fact, there were dirt poor because the education system was reserved for the elite. They may have had the genetics for Banking or Finance but they were force to swing hammers and other tools to survive. No education will do that to you. Lincoln and Einstein were genetic flukes.
OK so they did not have the opportunity. That is another point. But still does not mean that everyone who has the opportunity is as capable. You could even argue that working in a career for generations will develop skills need through evolution making someone better at that role in the future. If my family were bankers for generations could I have evolved to be more capable at the skills needed than people that do not have that ancestry?
Only to you, my friend, only to you.
Anyway, enough fun for the day - I promise I'll be the first to line up to deposit in your bank when you start one. Until then (must be late over there in GMT zone), good night.
Anyway, enough fun for the day - I promise I'll be the first to line up to deposit in your bank when you start one. Until then (must be late over there in GMT zone), good night.
Quote from morganist:
So hard. You are a bit of a bitter person aren't you.
M
morganist
Quote from the1:
That being the case, I think you would really enjoy reading the Yogananda book I mentioned earlier. If you choose to read it be patient because it doesn't get good until you are nearly 1/2 way through it. If you read it and practice it I promise you will not be sorry.
I am confused it is a book about a Hindu sage. Are you saying I need spiritual enlightnement?
Agree with your analysis, on the margins, DMTB... To me, there's an enormous amount of value in establishing the model, which is why I am happy to, effectively, subsidise it. So I sort of think about the lending I do on ZOPA as a "hybrid", rather than a pure loan/bond.Quote from DontMissTheBus:
I just looked at the website - didn't spend too much time on it so if you are familiar with it, feel free to correct my points below.
At a glance thoughts:
Looks like the avg default rate is around 3% p.a. Assuming zero recovery rate, the credit spread should be 300bps. Let's assume a 4Y term (the website says 3-5Y terms, so I'll take the mid) - 4Y GBP swap looks like is around 1.7%, so 4.7% is around the risk-neutral fair value.
The website says its blended lending rate is 6.8%. So, that's a spread of around 210bps over the risk neutral rate. At first glance, not bad right?
BUT - there's counterparty risk. Is ZOPA's credit spread tighter than 210bps? Probably not (I doubt it's large enough to have CDS traded on it).
So, doesn't look like a good place to park cash from a strictly investment perspective?
Martingoul, you are thoughts are welcomed here.
M
morganist
Quote from Martinghoul:
Agree with your analysis, on the margins, DMTB... To me, there's an enormous amount of value in establishing the model, which is why I am happy to, effectively, subsidise it. So I sort of think about the lending I do on ZOPA as a "hybrid", rather than a pure loan/bond.
Do you know the Managing Director?
Hilarious - yes; disturbing - no.Quote from DontMissTheBus:
So... the banking theory is....genetic....
Does anyone else find it both hilarious and some what disturbing that the moderator of the economics forum believes the ability to understand banking is... genetic?
I cannot claim I've had the pleasure of meeting the (wo)man... Does he/she also come from a long and illustrious line of people with a genetic predisposition towards banking?Quote from morganist:
Do you know the Managing Director?
M
morganist
Quote from Martinghoul:
I cannot claim I've had the pleasure of meeting the man... Does he/she also come from a long and illustrious line of people with a genetic predisposition towards banking?
I don't know. I think there are a few flaws in his business model though. One is that the size of the loans is barely above the legal cost of chasing it from what I can remember.
Banking, economics etc is my art. Can you understand where I am coming from. Is it just a way for you to make money, or is it more than that?