Making Significant Money with the HABID: Hedge Against Bankers and Investment Delays
Investors have been ripped off by bankers be it in mortgage funds, mutual funds or plain poor services. The question is what they can do not just to protect themselves but actually make money from bad banking producing costly delays.
Say for example, one has money stuck be it because of sluggishness with a central bank or because a bank is resistant and slow in liquidating your mutual fund or turning your mortgage over to another bank.
What you can do is place a bet with a bookie, private investor or set up a hedge regarding it.
For example, for every week the commercial bank or even central one is unable to get your money, you actually make money under such an approach. The worse the service or greater the disingenuousness of the banks or investment fund, the more money you make.
Let us say you have a million dollars for the sake of argument tied up in commercial bank, central bank or investment fund bureaucracy or say misplayed by them.
You could with a private investor or bookie place a bet that you won’t get your money for so many weeks, a month or year.
So you could, for example put up 10,000 dollars and an odd spread might be that within one month or more you did not get your money.
Let us say the odd spread on a foreign exchange transfer was turned into a bet of one that you would get it within one month. That means if you didn’t get the money within a month that you would make 100,000 thousand dollars.
If you did get the money, your loss would be only 1 percent of a million dollars. Even if you bet 10,000 on a hundred thousand, your loss would be s manageable ten percent.
On a bet on US dollars but with an interest in an Australian Canadian dollar, euro or Swiss franc outcome for example and with these non-US dollar currencies depreciating, a potential loss on the delay not going your way could be partly made up in foreign exchange. Of course, it could go the other way.
And if the foreign exchange direction is highly disadvantageous with delays in getting your money, then such bets from another perspective are more important.
So let us say the bank or investment being returned to you goes beyond a month then you can then take your 100,000 gain (net 90,000) then reinvest 10,000 or more if the risk is affordable for you and takes you there
The odds would be getting higher possibly that you would not be getting your money back as bad faith is more demonstrated but not necessarily.
It could be argued that there is more pressure at least on a regular bank such as a major Canadian bank sensitive to having a clean image to produce you money.so there are many factors that must be considered. A major Swiss or German bank is different than a Barbados bank, for example in terms of risk.
So on one hand it might be 15 to one that you would get your money after another month of waiting or a reverse of it.
Now, if you did get your money before the expiration of the hedge, then you would have lost only 10,000 dollars of a 90,000 dollar gain. You are still very much ahead.
If you did not get your money by that time, then you will have made 140,000 dollars plus the original 90,000 under the more optimistic scenario. That is over 200,000 dollars.
Now, the bookie or private investment person might lower the odds seeing how “fraudulent” your banker and/or investment or mortgage banker is in finally finishing the transaction.
But you can keep on making good money while your funds are unfairly or even legally tied up.
This cash could be important for sustaining the client particularly in tough times. There is no reason for you to suffer from such bad banking but rather to prosper from it.
The other way might be expensive for bank fees is you set up a hedge on whatever monies are being delayed. That should be for substantial money like millions.
The hedge is then traded over the counter. This could prove problematic as the market might not be that liquid. Goldman Sachs is highly interested in setting up client specific derivatives by the way. You can contact them to see what they might do for you.
The sad thing is that banks can tie up huge amounts of money these days and simply plea anti-laundering, antiterrorist, or anti-sanction compliance before releasing them. Even when they have little or no reason but want to reduce their risk to near zero and make money on your money, all at your expense.
The banks in some jurisdictions have to deal with the most convoluted foreign exchange regulations and/or sometimes be faced with pressures to limit or delay foreign exchange exit from a struggling indebted country.
Rules can be consulted for both liquidating of accounts or investments and you should be aware of these rules that can cause massive delays in various jurisdictions.
Some banks or investment funds may be facing more liquidity issues, not only audit inspections from the US Treasury and international financial institutions and you can get caught up in them.
Given the time consuming aspects and costs of liquidation and risks to taking on the legal departments of commercial bank behemoths and central banks, such hedging and betting may prove either a better alternative or complimentary to legal actions.
Too many individuals at the retail level are sometimes left in complete limbo even at the expense of their health in waiting for due diligence by the banking isystem to get their money to them. Taking out various insurances to keep the cash flowing while waiting can give peace of mind and even be lucrative.
In fact, I can visualize one investor who will make more money than the funds he will receive. And so it may be that, for example, that a Bernie Madoff fund investor initially could have protected themselves from a huge swindle by making such a bet.
When delays become worrisome, investors to even depositors should take protective action than simply act like idiots constantly “begging” their bankers to investment fund managers to even lawyers to get results – or clued out duped friends or relatives trying their best.
Because it may not be in the banks’ interest to release those funds even with bad publicity that might result. Lawyers and bankers keep on making more money as delays mount.
And after the 2008 banking nektdown, if you trust fully your banker then just call yourself a fool.
But for those making such a protective hedge bet, they may be laughing all the way to the bank. Make sure it is a different bank or investment fund as to where you put your winnings and even a safer country.
Switzerland, Singapore and quality coop banks may be good choices over Wall Street and what I call Canary “Wolf” London banks one of which tried to rip me off with no success. You can win as a retail investor and depositor if you use your head and keep at it. Too many do not and cave into fear and confusion and end up impoverished.
Or much worse off because they did not employ good strategies against the banker wolves who howl away with their success agsinst what they call you their “muppets”.