BOI went from 12c to €1 in 4 weeks. The crash was from €20 to €1 in a year.. course its possible... but its all crystal ball gazing. who knows what this gov will do, but the bank will stand and will have some value.Originally Posted by BodyofEvidence
Exactly, what would they know? Far better let 166 gombeens in Dail Eireann select the way forward!
It's a well known fact that if all the economists in the world were laid end to end, they still wouldn't reach a conclusion.
I'm sure there is probably an equal number of economists out there on either side of this argument, with both groups outnumbered by the remainder who can't decide.
Which branch of the administration would that be?
Current share price is heavily depressed by several factors
- the fear re scale of bad debts in property sector
- the threat of nationalisation.
- irish economy is a basket case - bank shares are essentially an investment in Ireland Inc
- no-one is buying bank shares in any market
A change in any/all of these circumstances would see shares recover quite significantly, but highly unlikely to get anywhere near previous peak in the foreseeable future.
However, many existing private shareholders have been shareholders for many years, even decades (they're not typically the hot-shot day-traders who post their wisdom on here.) These long-term holders would obviously hold & wait, even if it’s for several years, in the hope of some recovery, in preference to nationalisation which would wipe them out entirely.
That shouldn’t be too hard to understand – whatever your views on the merits of NAMA, nationalisation etc..
You know what they say. There are two types of economists. Those who know nothing and those who don't know they know nothing.
Even so, nationalisation is the best option - you can trust my opinion as I'm not an economist.
Nationalisation would be a disaster for the country. You can trust my opinion as I too am not an economist.
On Bloomberg today - Nobel Prize-winning economist Joseph Stiglitz says
"Rather than continually buying small stakes in banks, weaker banks should be put through a receivership where the shareholders of the banks are wiped out and the bondholders become the shareholders, using taxpayer money to keep the institutions functioning", he said.
When you buy a share, you are taking a gamble(regardless of past performance). If the company fails, you lose your money. Simple.
Those banks that have failed, must be let go down.
key sentence
i think the vultures are circling thinking they'll get obsenely rich at tax payers expense.We see nationalisation as being the inevitable consequence of a required recapitalisation of the banks done on terms that are fair for the taxpayer.
"To robbery, slaughter, plunder, they give the lying name of empire; they make a desert and call it peace." Galgacus (from Tacitus)
Shareholders are responsible for all mess in banks even more then management.
Shareholders were forcing management to gamble on property market in order to get high profit and see prices of their shares increasing.
I don’t see any reasons to save shareholders.
Government should nationalise at least one bank, fire all top managers, create a new management team, make it leader on personal finances market and sell few years later.
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