Forum Post: Starting your own Private Bank
Posted 12 years ago on July 26, 2012, 3:53 p.m. EST by SteveKJR
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This content is user submitted and not an official statement
I just came across this inofrmation and thought it would be worthwhile putting out there. I wasn't aware that an individual could start their own "Private Bank" for investing.
The information below provides the reader with one way to do it but from what I read there are other forms of investment that can be used.
Apparently this is a "win win" situation for both the Private Bank who needs the money and the people (investors) who invest in the Private Bank.
Here are a couple links - what do you think?
http://investorpro.com/article_real_estate_investors_opm.htm
http://www.trustetc.com/investing-articles/privatebankarticle.html
Interesting scam. I create my own private bank, borrow from someone else's IRA and play in some market. It's only a "win-win" if I pick winning investments. But then what do I care as long as it's someone else's money I'm losing?
Why do you call it a "scam"? Hey, if people get together and want to invest together - more power to them along with more opportunity for them to make money. Everyone has a investment in the plan.
What's wrong with that?
It looks like a system ready made for abuse. I think it's foolish to think that an individual would be any less corrupt then a corporation. While failure of a small private bank won't hurt a large number of people that doesn't matter to the person that looses his IRA in a bad investment.
Well if you think that way then what you are saying is that the people of this country are corrupt and can't be trusted.
Not all people are corrupt, but I can't tell who is by looking at them. I also can't tell who is going to make a good investment and who isn't. The idea of a private bank is great for the person borrowing money from his friends. It's a risk for the lender, if the investment in property or stock goes down, what protects his funds? Easy money and ignorant investors and lenders is a bad mix.
Ever watch this TV show called "American Greed"?
And just who are these "greedy people". They are everyday Americans - so I guess that explains it all about the people in this country - don't you think? No wonder this country is so screwed up - no one can be trusted can they?
Yep, we have a fundamental problem. Putting the ability to do private banking without strong controls into the hands of a citizenry of the kind we have here in the U.S.A. is a sure formula for trouble.