The bank takes the money you lend them and gambles with it. By and large, they gamble with it on what are called “derivatives”. Without going into too much detail, derivatives are essentially contracts for a future purchase of an asset at a fixed price, regardless of what the market price for that asset might…
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If you are like most people, you probably assume that your bank …
If you are like most people, you probably assume that your bank operates essentially like a safe, it is just a big vault that stores the money of its customers in their own little personal compartments. They charge you a fee for this storage, and that is how they make money. Perhaps there was a…