Thursday, March 22, 2007

MarketWatch's Chuck Jaffe: "Hold everything - here's how your banker lives off the float even if you can't."

Yes, it is rather outrageous. You've written the check, the money's gone from your account, but it's not there at your payee yet. Overnight interest rates being the way they are, don't look for much improvement. Funny how a pretty evenly balanced Congress gave relief to the financial intermediaries, and left us voters out twisting in the wind. It is typical behavior for a financial services industry which has a lot of clout. A lot of clout. On a similar note, how about the electronic, online bank payment you make, when the money is gone that day from your account, but the payee needs two business days (plus perhaps a weekend) to "process" the payment? Sweet, for them.

Your obligation is to know what's going on. You may not be able to do much about it, but you have a better chance to cope, if you stay tuned-in on the discussion. Time really is money.

Here's how your banker lives off the float even if you can't - MarketWatch

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