So, do you like to gamble with your money? Apparently, it is an innate human characteristic to want to gamble, and thus we see billion dollar casinos in Las Vegas and in a few other parts of the world. Well, you know you are probably not the only one who likes to take a risky bet or gamble with your money. But I ask you; what if you bank did that? What would you think about it all then?
There was an interesting article in the Wall Street Journal recently titled; “Deutsche Bank Doubles Down With a Casino,” by Alexandra Berzon and A.D. Pruitt published in November of 2010. I clipped the article out because it caught my eye, and make me smile. You see the bank had repossessed a casino bubbles property in Las Vegas and then found additional investment dollars. Now it has decided to operate the casino in Las Vegas rather than auction the property. That’s interesting isn’t it?
Are you surprised? I am not in the least, and let me explain my cynical sense of humor here, to which you will no doubt agree. First, Las Vegas is on the rebound after catching a double whammy – the global recession and then the Obama Administration condemning corporate gatherings in Las Vegas. Secondly, banks have been gambling all along. After all, isn’t that what happened when the real estate bubble burst in the US and caused a global economic catastrophe and recession? Sure, it is, or at least that was a good part of it all.
A bank is a bank – and when banks jump out of that mold and gets too tricky, well, interesting things happen – things which can cause lots of problems down the road, and I’d wager to say that when hybrid banking models gamble – bad consequences can occur. Indeed, I’d submit to you that’s what happened in Wall Street and other places around the world causing a severe crisis planet wide. Now then, I hope you will please consider all this.