Banks not a one-way bet; look at the big picture

THERE was a time when banks could do no wrong. Everything they touched would somehow turn to gold. It didn't matter which bank we had invested in. It was like having a licence to print money.

Then everything changed in 2008. We woke up to the reality that banks could actually go bust. Consequently, bank shares were sinking faster than a hot soufflé meeting a blast of cold air. It was their own fault. Many had forgotten why they were there.

They were there to provide a safe place for savers to keep their money. Some of those savings could be lent out to reliable borrowers for a fee. That was how banks made their money. They paid savers a tiny bit of interest on their deposits and charged borrowers a lot more on their loans.