Easy Money – How the banks make money in the new world

How do banks work? The answer to this question might be changing. In very simple terms banks buy and sell money. They pay interest to customers who put money on deposit with them. They then use that money for several different things.   Mostly they use the money to lend it out to other customers. They charge these customers interest …

Bob Hope – The Power of One

Bob Hope.   It is now just over two years since the BNP Paribas stopped withdrawals from an investment vehicle that was invested in sub-prime mortgages, this spooked investors and the credit crisis unravelled. The depth of the difficulties were yet to come to light and over the past two years or so the limits of peoples worst expectations have …