If I finance a bank and I know if the bank will get in trouble, I will be hit and I will lose money, I will put a price on that.
Sentiment: NEGATIVE
People think when you have a, quote, 'bank failure,' that that is the end of the bank. And it isn't necessarily.
You want banks to take some risk, but intelligent risk.
I happen to know a bit about banking.
Banking is a very treacherous business because you don't realize it is risky until it is too late. It is like calm waters that deliver huge storms.
If you're not staying on top of your money, you are putting your financial well-being at risk.
Banking gives you a glimpse into what makes companies succeed and what makes companies fail.
Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.
I think to the extent you die with money in the bank, you've miscalculated.
The chances of a bank going out of business are extremely slim, but it's always a good idea to spread around major sums so every penny is backed by insurance.
Remember that banks aren't markets. The market is amoral. The market doesn't care who you are. You're a trade to the market. The market will sell you if they think you're riskier.