Why I hate Bank Stocks.

Why do I hate bank stocks?



Summary: Neither A borrower nor a lender be.



Banks basically make money thru borrowing and lending. And through buying and selling financial instruments, hur hur hur.



All activities which I'm not really all that fond of.



Banks assume that if you give 100,000 loans, 97% of them will repay their debts.



... which I am rather skeptical of!



Call me a cynic, but I think that if you or me went around giving loans, we would not be surprised to find 2 out of 10 people giving us problems collecting. That's 20% NPL.



And frankly, do you think would be more stringent in lending criteria, us or the banks?



Frankly, these banks are giving loans to any tom dick and harry! And large ones too!



Even my cleaning lady can get a 25k loan, with no collateral!



So, when banks announce that they only have 3% or 5% non-performing loans, I am SKEPTICAL.



...



As for the financial instruments... hahaha, no need for me to speak on that subject, right?