A Glimpse Into The Future-Why I’m Optimistic

I picked this post up from the Upside Trader, one of the people that I follow on StockTwits.  The piece is actually written by a guest, Mark Garbin.  Mr Garbin in his piece found here which is pretty long gives a very good overview of the current banking crisis and what it mean to the various players including the bank themselves, governments, and of course the ordinary citizens.


As I note you can read the full version here but here is one piece I wanted to highlight;

• Where does this leave Mr. & Mrs. Six-Pack?  We can take a cynical view that they’re going to continue to be royally screwed; or we can give the flick to that devil on our left shoulder and try to see how a family/individual can take advantage of this situation.  First, recognize that most banks don’t want your deposits.  They are liabilities that put cash assets on the balance sheet i.e. more capital required.  They DO want more wallet share.  The tremendous emphasis on cross selling is what drove and continues to drive banks like Wells Fargo; set by the strategy of Richard Kovacevich and continued by John Stumpf.  This is where individuals can benefit.  By concentrating business in a very limited number of banks, the global middle class can become more important to those institutions.  They just have to be careful that in deposit products, they don’t run afoul of money in excess of government guarantees.  Secondly, yes you will have to pay more for financial planning BUT at least you’ll have some.  This is a sorely underused capability and very much needed in this world.