We Should Be Scrutinizing The Banks With This Formula
This is a very short article but in this case 'size doesn't matter'.
I never realized how simple it is to check the 'strength' of a bank?
You'll probably be surprised how simple it is too. Just read this short article by Simon Black, founder of www.sovereignman.com.
As an aside, most people don't know it but Simon has some kind of accounting degree… as evidenced clearly by how much of that jargon and explanation he puts into his articles.
Simon has often written about the weak financial positions of not just US banks but the vast majority of banks worldwide. He often gives precise figures and explains why there are so bad.
But it wasn't until tonight that he got my attention by explaining the uber-simple formula of figuring it out one very important bank ration on my own. Yeah…the figures you need to plug into a quick computation are right there on the internet.
Read this article and take note of the simple formula (just two figures is all you need) .
I'm amazed it's so simple to see how shaky these banks are.
P.S. The carton in the article is hilarious too.