It looks like you're using an Ad Blocker.

Please white-list or disable in your ad-blocking tool.

Thank you.


Some features of ATS will be disabled while you continue to use an ad-blocker.


[Financial Fire Extinguisher] How I Learned to Stop being a Pain in the Bank and Wisen Up to Wall St

page: 1

log in


posted on Feb, 1 2012 @ 09:20 AM

I realized something after watching this short video ...

... That if the LOCAL bank/credit union is full of saved money then the interest rates will go down and stay down [reaching an equalibrium after some fluctuations early on when bank goes full and rates drop and the bank lends lots (to our kids etc. so they can get somewhere) thus emptying the banks vaults to a certain extent (until repaid with % interest in the long run) which raises the interest rate which is a sign to start saving again as the flywheel is losing momentum] , money will become cheap and the bank won't want anymore cheap money and will want people to INVEST in the local economies stock market in Blue Chip (stock market) [wiki] stocks that return a yearly dividend!

At that point one directs the excess interest payments on ones local bank savings account [because the bank is full and we don''t want the interest rate to fall too low ] into the stock market [generally speaking] and into regular dividend paying local blue chips stocks [specifically speaking].

Then one buys and long term holds enough local blue chip stocks that return enough yearly dividends to cover ones yearly usage of products and services PLUS a small surplus that is invested in a non local bank and or stock market and is ones pension fund. This is choosen primarily for security reasons known as "Don't keep all your (nest) eggs all in the same basket."

This sets up a finacial flywheel with a lot of momentum [ie the FLOW] because once the STOCKS [ie banks and stock markets] are FULL they start to overflow into other STOCKS!

This IS the map of financial growth in my humble opinion (self taught mostly)!

So ...

1] Earn a profitable wage so can save some $$$ that accrue some low % compound interest rate in a local bank.

2] Fill up your savings account until the local bank starts to drop it's interest rates [ a watershed moment ] and then divert all further profits from savings into a non local bank account [pension fund] and divert all wage profits into blue chip stocks until your financial flywheel is up to speed with your lifestyle with some money momentum to spare.

3] Divert all excess yearly blue chip profits into non local blue chip stocks in non local stock markets.

4] When both non local bank and non local stock market financial flywheels are also up to speed for the lifestyle you wish to live in retirement, then one can start playing with what ever excess one has left and can afford to take a bigger gamble on the stock market with non blue chip stocks and become involved with bonds.

5] Buying long term low % interest rate bearing bonds allows the NATIONAL GOVERNMENT to purchase [on our behalf] nationally required infrastructure such as roads and hospitals etc. When they pay off around the time of ones retirement this adds an extra boost and peace of mind to ones future retirement.

6] When the Nation is financially and economically safe and sound [ie the entire set of flywheels are working in conjunction with each other and the flow of money is continuous and the flywheel has a high momentum due to having a high money mass with all the stocks being full] THEN one can start thinking about investing overseas in other nations.

7] Finally when one runs out of all safe bets and all ones bases are covered locally nationally and globally [ie all ones stocks are full and overflowing] then one can take even greater gambling risks such as day trading and futures etc.

We can trade metals [or similar] as Gold currency [or similar] or Cannon shot [or similar]. One is far more economic and takes less effort and is far less bloody minded as fair trade in a a free market economy is the source of technological growth when one starts investing in R&D start up companies in day trading and futures markets.

Personal Disclosure: Make Bank'$ [etc] your Friends ok!

edit on 1-2-2012 by OmegaLogos because: Edited to add blue chip stock market wiki link.

edit on 1-2-2012 by OmegaLogos because: Edited to fix spelling.

edit on 1-2-2012 by OmegaLogos because: Edited to redact "either" for clarity.

posted on Feb, 1 2012 @ 03:27 PM
I'm not a financial wizard, so your ideas seem pretty sound to me, but there is just one catch.

The economy is tanking and inflation is driving up common prices for food and gasoline at an exponential rate to which I barely can afford each week.

So what do I have to put in savings to begin with?

I don't. I return pop bottles I find and collect from others at work to help pay for gas each week because my check barely covers rent, insurance, food, etc. etc. etc.

I'm sure there are plenty of others in the same boat, unfortunately it's sinking fast and we don't have extra pails to bail with.


posted on Feb, 1 2012 @ 03:38 PM
reply to post by OmegaLogos

trying to 'work with' the banking system, is like trying to go gazelle hunting with a lion. hahahaha

posted on Feb, 13 2012 @ 02:12 AM
Explanation: Bumped to help generate ad revenue!

Personal Disclosure: Enjoy!

top topics

log in