UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: Haise Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2247  
Subject: Re: Mr. Bogle on capitalism Date: 7/1/2006 2:03 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Is it socially responsable to be a shareholder of a bank? As a shareholder of a bank you encourage the bank to bet against the interests of their beneficiaries.

Banks aren't betting against the interest of their beneficiaries. They're simply paying the market rate on deposits or charging the market rate on loans. As the bank's customer, you can take your business anywhere. Case in point, millions of people now are using online money market accounts through ING, Emigrant Direct, or Citibank for their savings because the rates far surpass anything a traditional money market or savings account can pay.

To say that a bank is trying to charge the highest rate they can for mortgages is just how capitalism works. Kroger would charge $10 for a gallon of milk if we were willing to pay that much.

From an SRI standpoint, I could see an investor taking issue with short-term loans exceeding 20-30% annualized interest rates or pushing the use of cash advance checks. I've also read about some banks providing loans to the Sudanese government to fund the purchase of military equipment for carrying out genocide. But charging the highest interest rate on mortgages that the market will bear is no crime and, in the greater scheme of things, is exactly what we want banks to do because those rates are tied the cycle of our economy and we need periods of recession and growth to maintain our productivity.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement