I make good soup. Approximately $14 worth of ingredients will make 10 meals. If I add more water, I can increase the number of meals. Marginal utility indicates I can’t just keep adding water and feed myself for life … unfortunately. However, this way of thinking leads to wondering how banks can keep increasing their profits … is there a point where they can no longer capitalize on their investments … Is there a point where ordinary people figure out the banks (I say, banks, cuz they are all making huge profits) are exploiting our situation and can be effective in bettering their own situation. Exploit the exploiters? The time is not now.
In ordinary people terms, I think of Profit as Savings. The bank has a Savings account where in 2013 they tucked away $6.7 Billion dollars for rainy day. Meanwhile, ordinary people have proportionally less (Savings as a result of not spending) for a rainy day. For the ordinary person, cut 1,500 jobs, close 120 branches, would like be no more cable tv or cel phones, in order to increase savings.
For the ordinary person, this has no potential for increasing revenue. The answer would not necessarily lie in ordinary people investing in banks cuz they don’t necessarily have enough Savings to do that. Plus investing in Bank stock as a means to … this is becoming gruelling.
Banks close branches, tear them down, develop the property into, say, condos and then slap an ATM on street level. The condo property increases revenue for the bank. But I still can’t help but wonder if there is a point of singularity (on the event horizon) where there cannot possibly be more profit, where everything that can possibly be exploited has been exploited.
There must be a flaw.
There is a fly in my soup.