I was skimming through the local media this morning and one particular title caught my eye. There was a weird word in the title for the subject matter. I did an internet search for similar titles.
These are few of the results (you can do your own search and let me know what you find, after reading the post):
– Bankers bet on SME’s, even though they have the highest credit risk
–Barclay’s analyst bet on RON to strengthen on the next 6 months
–“Governor Isarescu at Galati: bet on the RON if you want to win”
–Romanian banks bet on mortgages
I do not want to discuss the outcome of those predictions. What interests me is the choice of the word: bet (pariaza in Romanian). Is this really what we should do with our savings ? Is this really what banks should do with our savings? Should not the word have been: INVEST?
What do I know. Let’s get a dictionary. This is what Webster Dictionary has to say about:
bet also bet·tedbet·ting
Definition of BET
a : to stake on the outcome of an issue or the performance of a contestant b : to be able to be sure that —usually used in the expression you bet <you bet I’ll be there>
a : to maintain with or as if with a bet b : to make a bet with c : to make a bet on
First Known Use of BET
Related to BET
And this is about
Definition of INVEST
: to commit (money) in order to earn a financial return
: to make use of for future benefits or advantages <invested her time wisely>
: to involve or engage especially emotionally <were deeply invested in their children’s lives>
— in·vest·able adjective
— in·ves·tor noun
Origin of INVEST
Italian investireto clothe, invest money, from Latin, to clothe
First Known Use: 1613″
After reading these definitions it clear to me that the article titles were right about the choice of the word bet. There has been very little investment in the Romanian economic and a whole lot of betting. Then, there should not be a surprise the current state of both the Romanian economy and its banking sector.
is the article that got me started today. The same bank has bet on Alt A mortgages in the US, owned a big chunk of Greek debt and still owns big chunks of Spanish and Italian debt. So, how do you think their latest bet will work out?