Denseman on the Rattis

Formerly known as the Widmann Blog

economicsen

7% interest = odds of 2/7



Tottenham Betting Shops #12
Originally uploaded by Alan Stanton

I found this blog posting on PoliticalBetting.com a very refreshing on the Icelandic bank collapse.

It basically argues that putting your money into an account that pays higher interest than the average bank is effectively a gamble:

Those who handed over their cash to these banks were not normal savers but gamblers who were getting odds of up to 2/7 that their money would be safe.

[…]

I’m a gambler but this was too risky a bet for me. […] But those who took the Icelandic gamble have been enjoying the vastly inflated returns and now, thanks to Brown and Darling, could get most of their money back.

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