The deceptive security on the financial market and the mechanisms of money increase

The modern financial world is constantly attracting its customers with supposedly secure promises, which are intended to guarantee the complete preservation of the capital employed. However, behind these euphonious and trust-inspiring terms, there are often highly complex constructs that remain completely hidden from the normal layman. The entire industry uses the natural and deeprooted fear of people of financial losses in order to massively maximize their own profit margins. Anyone who sees through the true and often veiled mechanisms of these businesses quickly recognizes the actual benefit for the large institutes.

The eternal contradiction between the desire to return and the need for security

The well-known dilemma prevails among investors who, on the one hand, want to achieve the highest possible profits on the markets. At the same time, however, they fear the total and devastating loss of their hardship and for years of assets that have been saved. The resourceful financial industry therefore regularly lures its customers with special and seemingly risk-free guarantee products. The promise to theFull repayment of the deposited money always draws, especially when it is linked to high profit prospects.

The simple truth behind the complex constructs

However, most customers would be restrained and outraged if they knew the real blueprint of these offers. Everyone can put together plants with guaranteed repayment without any third parties on their own. The real secret lies in the clever combination of secure interest papers and highly speculative securities. you needOnly discounted bonds, where the interest is not paid annually but collected at the end of the term.

The mathematical trick of interest deduction

The initial and often hidden interest deduction can be determined quickly with common arithmetic aids and a little practice. With moderate interest rates and manageable terms, there is always a significantly lower investment amount for the later payment amount. If you had large amounts of money on the high edge, you could buy the interest product for fractions of the later sum. After expiry ofspecified time, the saver will get back the full and original amount without deductions.

The emergence of the speculative war chest

Through this clever approach, the investor already has considerable surpluses for speculative purposes on the market. With this free capital, he can now act cheerfully and rely on rising prices for various assets. For example, he chooses highly speculative subscription rights, which currently only require small cent amounts as a stake. For the excess amounthe receives huge numbers of these papers and participates directly in possible price increases.

The asymmetry of risk and profit distribution

If the prices on the stock exchanges rise, the speculator’s use will multiply in a short time. In the nature of such leverage products, however, it is that profits can become total losses just as quickly. However, the investor always has the comfort of the safe basic investment, which guarantees him the original capital. Regardless of whether the speculative part is completely destroyedhe will end up with his money back.

The illusion of absolute security

These guarantee products are nothing more than just awkward for the unsuspecting and trusting clientele. The full-bodied commitment to capital preservation is based on the upstream collection of interest. The institutions use these funds to make risky bets on the global financial markets. If the speculation goes well, it is significantly higherInterest in the case of normal safe systems.

The real beneficiaries in the background

In contrast to private investors, the banks have huge sums in their speculative coffers. With these huge amounts, you can speculate and maximize your own profit at the expense of the clientele. However, the unenlightened customer firmly believes that the institute is doing something good for him. In truth, the bank is only doing something good for itself bycommissions collected in sales.

The systemic exploitation of ignorance

The practice of financial institutions reveals profound structural problems in dealing with private assets. Instead of providing real security, complex math models are used to pass the risk to customers. The institutes secure themselves in advance and keep the lion’s share of possible profits to themselves. Only when investors see through this system andDeveloping your own strategies, you can escape dependence.