Income Investing and Financial Repression: The Next Step For America's Banks

America's banking system will be "Canadian-ized." Early investors stand making absolute fortunes while doing so.

When Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act we forecasted some significant modifications to the banking system.

The enormous law of more than 1,000 pages included all sorts of rules and modifications.

It has currently spawned 14,000 pages of new banking policies. And CNBC says there are still a "variety of guidelines that need to be composed."

Will these policies secure the banking system?

We doubt they will safeguard the banking system from the next crisis. Only the federal government backstop will.

They will, however, safeguard a great deal of them from something they fear even more.

That's competitors.

The top donors to both Sen. Dodd and Rep. Frank were big banks and banks. No surprise since they represented Connecticut and Massachusetts respectively.

And it's becoming completely clear the donors got exactly what they spent for - more policies.

Now, in the beginning thought, policies are supposed to be great for consumers and bad for businesses. They remain in numerous aspects. They make their biggest market on the tiniest business in an industry without the large facilities and number of workers to fulfill them.

That's why in time it becomes inescapable they ultimately stand really only to protect established players in the industry.

It's called regulative capture when the regulations take over as the regulatory authorities. It's why there's a "revolving door" between Washington therefore numerous big businesses. Check out porter finance here .

It's so those being regulated can manage the regulation. And in time control away their competitors.

Well, that's precisely what's happening to America's banking system.

Usually, a growing market would bring more competition. However mostly due to exceptionally high regulations, there are few new banks getting founded. Many more banks are getting taken control of, combined together, or lack company.

This pattern will just continue till the U.S. appears like Canada. That's a nation where they have actually had far higher banking regulation and it has actually led to 5 major banks running the entire country's monetary system.

For good investors, this is a huge pattern one would do extremely well by hitching a ride to it.

In a few years there will be far less banks than there are today. There will certainly be less competition. Costs will be higher for consumers and profit margins will be fatter for the banks.

As the U.S. banking system works towards this, there will be a growing pie of business and a higher share for each bank that remains.

Purchase the huge banks and go along for the trip. There's a 20-year booming market ahead for huge bank stocks and safe, constant dividend earnings streams to be paid along the method.

Capital Raising

Capital raising can be a challenging task. It comes down to a couple of vital points, including knowing who you're selling to, and exactly what you're actually offering. It likewise needs that you listen, ask questions, and let your target do the talking.

When raising capital for a hedge fund, private equity fund, task, or other investment, it is important to abide by these 3 principles:

Meet personally as often as possible, and pick your network carefully. Jeffrey Gitomer lesson stated that "life is unreasonable and that is terrific news to those with good friends." It has likewise been said that in 2 years you will certainly be the outcome of the 5 closest good friends and company friends around you. Keep that in mind as you surround yourself with professional and personal good friends. What 2-3 crucial investor buddies would press both your personal advancement and capital raising to the next level?

Be persistent, however respectful. The majority of online marketers and capital raisers give up after 2-4 efforts at reaching or offering a financier. A lot of investments are made after a minimum of 9-12 follow-up attempts. Robert Cialdini's work on influence and persuasion reveals that after 5-7 efforts you end up being "familiar" and more influential. It is interesting that psychology shows we can just hold 5-9 pieces of details at a time. It could be that, just due to mental capability, we have to form a general opinion after the first 5-9 touches because we cannot store every individual time that we have actually engaged with that individual.

Constantly enhance. Constantly press to the next level of development within your marketing materials, marketing knowledge, CRM system, your authority status, and connections. If you are not advancing, you are retrogressing. Make it a point to better you every day.

When implementing these three basic points, remember that raising capital is something you will get better at, and you will certainly discover what works for you and your target market. Raising capital is instructional marketing. Your primary task is to educate, listen, and inform. Hand out as much info and value as you can. When you originate from an authentic place, those you're trying to reach and raise capital from can see that.

Before putting # 2 above into practice, define your target audience and learn more about all about them. Instead of deciding to target "physicians", consider targeting "cardiology surgeons in the US" for an investment you have actually associated with vascular care, for example. Be particular, and discover a specific niche. Being more certain and more targeted in who you opt to method will make your capital raising efforts more successful.