Forex Trading – Can You Still Trust Banks Or is it Time to Buy a Safe?
Banks won’t survive without our trust. The whole system functions on a promise to keep our money safe and to give it back to us when needed. Keeping your money in the secure financial institution sounds so much safer than under the mattress in your apartment. The question is, are your money really safe especially now when the whole world is experiencing the strongest economical tsunami? How do banks really work? The basic idea is that we deposit our money into banks with an illusion that your money is untouched and much safer than at home. After all, chances of your house being robbed are much higher than the bankruptcy of the bank (or so it was until now!). In reality, though, under the promise to return the money the bank gives loans to individuals, businesses and other banks. By charging the loaner interest rates, the banks earn profits. You, as a depositor, receive the smallest portion of those profits – interests. Speaking of interests, it is also called the price of money because
