Comments on: Our financial system is getting too complicated http://novice.alvinlim.info/2009/07/20/our-financial-system-is-getting-too-complicated/ Story about my journey as a novice in investment and money making Mon, 02 Jan 2012 02:45:38 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Alvin Lim http://novice.alvinlim.info/2009/07/20/our-financial-system-is-getting-too-complicated/comment-page-1/#comment-2246 Alvin Lim Mon, 20 Jul 2009 10:41:03 +0000 http://novice.alvinlim.info/?p=421#comment-2246 <b>@ Damien</b> Yea, the money changes hands unlimited of times...and each time, the "value" goes up. But the actual value remains. Funny how something worth 10k can actually be priced at 100 times that amount. And the interest rates, service charges fr those 'banks' and 'experts' actually go up with the 'value'. :| No wonder everyone wanna be in the finance industry. Anyway, in regards to Goldman Sachs, I think they didn't receive a heavy enough punishment. If a small boy goes steal the toy from another boy and he only receives a short lecture....he will of course go for it again. No pain, easy gain. @ Damien
Yea, the money changes hands unlimited of times…and each time, the “value” goes up. But the actual value remains. Funny how something worth 10k can actually be priced at 100 times that amount.

And the interest rates, service charges fr those ‘banks’ and ‘experts’ actually go up with the ‘value’. :| No wonder everyone wanna be in the finance industry.

Anyway, in regards to Goldman Sachs, I think they didn’t receive a heavy enough punishment. If a small boy goes steal the toy from another boy and he only receives a short lecture….he will of course go for it again. No pain, easy gain.

]]> By: Damien Tan http://novice.alvinlim.info/2009/07/20/our-financial-system-is-getting-too-complicated/comment-page-1/#comment-2240 Damien Tan Mon, 20 Jul 2009 04:24:46 +0000 http://novice.alvinlim.info/?p=421#comment-2240 I am fascinated by investment schemes where money changes hands but no real value-add is ever seen in the industries they "invest" in. The only thing I can see are players making a few bucks as money changes hands. So I ask myself, what do investment managers do? Make money change hands as often as possible or park it in companies so that they grow? Goldman Sachs emerged as the winning bank in the US recession, making billions in the latest quarterly profit. But I wonder why no one actually wrote about the actual tangible value they generated while making those billions. How many jobs were created for example, or how much manufacturing output was increased as a direct effect of its investments? Was there actually any tangible benefit to society or were they just making a few bucks for "investors" and itself? I read reports that Goldman has decided to go back to high risk investments again as what they did before the recession. I'm no expert but it seems we haven't really learnt anything. And worse, the whole country (USA) is cheering them on for learning nothing. I am fascinated by investment schemes where money changes hands but no real value-add is ever seen in the industries they “invest” in. The only thing I can see are players making a few bucks as money changes hands. So I ask myself, what do investment managers do? Make money change hands as often as possible or park it in companies so that they grow?

Goldman Sachs emerged as the winning bank in the US recession, making billions in the latest quarterly profit. But I wonder why no one actually wrote about the actual tangible value they generated while making those billions. How many jobs were created for example, or how much manufacturing output was increased as a direct effect of its investments? Was there actually any tangible benefit to society or were they just making a few bucks for “investors” and itself?

I read reports that Goldman has decided to go back to high risk investments again as what they did before the recession.

I’m no expert but it seems we haven’t really learnt anything. And worse, the whole country (USA) is cheering them on for learning nothing.

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