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01 February 2009

Banking ignorance

I liked this quote from the recent Davos conference:

One top money market manager said: "If you believe that the world economy will turn the corner at the end of this year, or in [the first quarter] of 2010, I tell you we have not turned the corner, we can't see the corner, we don't even know where the corner is."

Once again, as I have said repeatedly on this blog bankers seem to be completely out of touch with customer service, a vision of improving the quality of their products and are constantly engaged in an endless cycle of making as much money as possible and no consequences for either customer service or indeed the global recession their greed has now caused. The above is simply another statement of their ignorance of the real world. Put the bankers into an environment where it's about more than just making as much money in a risky a fashion as possible and it's into headless chicken mode.

Still, one thing appears clear - the above quote does at least indicate that in the last year months they have learnt something about honesty.

Top tip for banks: Now is the time that you need to start thinking out of the box and investing in startups that have a solid business model which works in a recession. That's where you'll get the great growth rates, not in buying other banks laden with sub-prime debt (Royal Bank of Scotland etc take note)


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