Succinct Financial Quotes

October 6, 2008 | By | Reply More

These quotes are taken from an article written by Paul Tustain, a Director of Bullion Vault. We thought that they are succinct and to the point, hope you enjoy them.

"Why would anyone pay more for funds from a cautious bank
when cheaper funds from an easier source are available?

This is why the profits of incautious banks grew, and why their
stock prices multiplied. Meanwhile careful bankers sunk.

Governments operate a cheap credit policy in order to defer pain, stay popular, and get re-elected.

The US bank rescue is intended to create and promote a
higher volume of cheaper and easier credit than the market really
wants. Hmmm. They want more of the wretched stuff which got us here
in the first place. Is that really so wise?

Let interest rates rise (without government interference) and allow the
market to kill off those institutions whose functioning depends on
limitless supplies of cheap credit.

Did you notice that while the America, the UK, the Netherlands and
Australia were banning short selling, the Chinese were relaxing
restrictions on it? This is enormously telling. Asians – suppressed
by the command economy for decades – aspire to a world of free
enterprise."

 

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