Zero Sum Game?
Daily the value of companies on the financial markets fluctuate billions. Today investors might wake up after a bad night and “feel” that the stock market will collapse. Their dream comes through and the share prices drop 50%. Macro-economic nothing changed only on paper the wealth dropped dramatically! The next day, after a good night sleep, investors feel positive and think they were too depressive; the stock prices gain 100%.
Salvation of the Banking System
The banking system has taken society hostage. Modern economies cannot function without a financial system that guaranties daily payments executed in time. Even after the world almost collapsed when greed for millions cost society billions the banking business goes on as usual.
The services banks provide can be split up in to:
- Processing the daily payments of their clients and
- Investment banking activities