If you're making all your money simply betting on interest rates, that's not a business. Flow is a business. On the outside, they look the same for a while. But when you dig into them, no, they weren't exactly the same.
Sentiment: NEGATIVE
The fact is that one of the earliest lessons I learned in business was that balance sheets and income statements are fiction, cash flow is reality.
Credit unions are often a better deal than banks and tend to pay higher yields on deposits.
Your initial instincts about investments and people are usually correct. We do a lot of due diligence in this business and most of the time it comes out where we started.
It's much more difficult running a business than buying one.
The business of a bank is to lend money; which amounts, nowadays, to lending credit.
The economy may be complex, but Americans understand that the Wall Street banks control an outsized portion of the economy and that they have an outsized interest in their own profits.
You just can't keep pouring money down an endless hole and never recoup any of it. It's got to be a business.
Profits in business always depend on the rate of interest: the higher the interest, the higher the rate of profit required.
It all comes down to interest rates. As an investor, all you're doing is putting up a lump-sump payment for a future cash flow.
When we think of the state of the economy, we are not thinking in terms of money flow. We are thinking in terms of the effect on everyday lives of people.