Here's the original article for this video report:
In this video, I talk with author and economic analyst John Sneisen about Japan's second largest bank, Japan Post's plan to plow 100 billion Yen in stocks over the next five to ten years.
100 billion Yen is basically about 904 million US dollars.
John breaks down how completely insane this move is as banks continue to invest in stocks and risk depositors' money.
As John says,
"The old banks, they had the deposits and they borrowed out a fractional amount to car loans to house loans to business loans, etc.
That's their business, it's not to invest in the stock market.
Stock market investing is for us as investors or people on Wall Street, or if you actually invest in hedgefunds, ETFs or mutual funds.
A bank's job is not investing in stocks.
Now you're creating a bank that depositors thought they had their money safe in creating massive amounts of risk on the volatility of stocks. It's insane.
It's not a bank anymore, it's closer to being a hedge fund or a mutual fund where you just basically have shares.
Before they used to have the savings and loans companies and they were broken up into savings banks and investment banks.
The problem is now the banks can do whatever they want with your money and invest in derivatives with the money you borrow to the banks. Banks are not making any money on the deposits anymore. They're making next to zero and with negative interest rates they don't even care about that anymore. They do whatever they want, investing your money in whatever they want to risk it on."
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