Saturday, March 16, 2019
Is Our Money Safe? :: essays research papers
<a href="http//www.geocities.com/vaksam/">Sam Vaknins Psychology, Philosophy, Economics and conflicting personal matters Web SitesBanks are institutions wherein miracles happen regularly. We rarely entrust our silver to any superstar just ourselves and our banks. Despite a very chequered history of mismanagement, corruption, assumed promises and representations, delusions and behavioural inconsistency banks still succeed to motivate us to eliminate them our money. partly it is the feeling that there is safety in numbers. The fashionable stipulation instantly is moral hazard. The implicit guarantees of the state and of new(prenominal) monetary institutions moves us to take risks which we would, otherwise, have avoided. Partly it is the sophistication of the banks in selling and promoting themselves and their products. calendered brochures, professional computer and video presentations and vast, shrine-like, real estate complexes solely operate to enhance the image of the banks as the temples of the new religion of money. just what is ass all this ? How flowerpot we judge the soundness of our banks ? In other words, how can we tell if our money is safely tucked away in a safe haven ? The reflex is to go to the banks rest period sheets. Banks and balance sheets have been both invented in their modern frame in the 15th century. A balance sheet, coupled with other fiscal statements is so-called to provide us with a true and full describe of the wellness of the bank, its past and its long-term prospects. The surprising thing is that despite greens idea it does. The less surprising element is that it is rather useless unless you bash how to admit it. Financial asseverations (Income aka Profit and Loss - Statement, Cash Flow Statement and dimension Sheet) come in many forms. Sometimes they conform to western business relationship standards (the Generally Accepted Accounting Principles, GAAP, or the less pissed and more than fuzzily worded International Accounting Standards, IAS). Otherwise, they conform to local accounting standards, which practically transmit a lot to be desired. Still, you should look for banks, which make their updated financial reports useable to you. The best choice would be a bank that is audited by one of the Big Six Western accounting firms and makes its audit reports in public available. much(prenominal) audited financial statements should consolidate the financial results of the bank with the financial results of its subsidiaries or associated companies. A lot often hides in those corners of corporate ownership.Is Our Money preventive? essays research papers <a href="http//www.geocities.com/vaksam/">Sam Vaknins Psychology, Philosophy, Economics and Foreign Affairs Web SitesBanks are institutions wherein miracles happen regularly. We rarely entrust our money to anyone but ourselves and our banks. Despite a very chequered history of mismanagement, cor ruption, false promises and representations, delusions and behavioural inconsistency banks still succeed to motivate us to give them our money. Partly it is the feeling that there is safety in numbers. The fashionable term today is moral hazard. The implicit guarantees of the state and of other financial institutions moves us to take risks which we would, otherwise, have avoided. Partly it is the sophistication of the banks in marketing and promoting themselves and their products. Glossy brochures, professional computer and video presentations and vast, shrine-like, real estate complexes all serve to enhance the image of the banks as the temples of the new religion of money. But what is behind all this ? How can we judge the soundness of our banks ? In other words, how can we tell if our money is safely tucked away in a safe haven ? The reflex is to go to the banks balance sheets. Banks and balance sheets have been both invented in their modern form in the 15th century. A balance s heet, coupled with other financial statements is supposed to provide us with a true and full picture of the health of the bank, its past and its long-term prospects. The surprising thing is that despite common opinion it does. The less surprising element is that it is rather useless unless you know how to read it. Financial Statements (Income aka Profit and Loss - Statement, Cash Flow Statement and Balance Sheet) come in many forms. Sometimes they conform to Western accounting standards (the Generally Accepted Accounting Principles, GAAP, or the less rigorous and more fuzzily worded International Accounting Standards, IAS). Otherwise, they conform to local accounting standards, which often leave a lot to be desired. Still, you should look for banks, which make their updated financial reports available to you. The best choice would be a bank that is audited by one of the Big Six Western accounting firms and makes its audit reports publicly available. Such audited financial stateme nts should consolidate the financial results of the bank with the financial results of its subsidiaries or associated companies. A lot often hides in those corners of corporate ownership.
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