Bank shares soaring on belief taxpayers will bear NAMA pain - Irish, Business - Independent.ie
Bottom line : the deliberate policy that is being signalled by the Govt of overpaying for NAMA assets has resulted in massive gains already and massive gains to come for bank shareholders. The bondholders we know about. This represents a massive transfer of capital from the taxpayer to the risk capital holders. And effectively not a word about it from anyone bar the economists in their blogs...
The FF mantra, Privatise the profits, socialise the losses.
That isn't the bottom line at all.Originally Posted by BodyofEvidence
The only shareholders who will gain are shareholders who bought into the banks in the teeth of the crisis, when the shares were effectively penny shares. That was a massively risky investment on the part of any investor, and the gains reflect that risk. The vast, vast majority of shareholders in Irish banks have lost their shirts over the last 3 years.
And its complete tosh to say that there has been a transfer of capital from taxpayers to shareholders. Any transfers of cash from the taxpayer to the banks have been in return for an ownership stake in those banks. Accordingly, if the value of that banks rises on foot of taxpayer capitalisation (which is a matter of opinion), the taxpayers benefits proportionately.
6 months ago, you were banging on about Government measures having 'failed' because the share price of the banks were still in the hole. Now, you're banging on because the market position of the banks is stabilising.
Your bleating might be a bit more bearable if you'd pick a key.
A demagogue is someone who will preach doctrines he knows to be untrue to men he knows to be idiots.
Goosebump
the only reason the bank shares are up is because the investors understand that the government is cutting a deal that is favourable to the banks
without a favourable deal the banks were/are dust
to attempt to claim otherwise would be disingenuous
Bit of a nonsense article... whilst it makes some good points on the broad scheme of things, it purposely fails to point out that shares, in for instance AIB Bank, are actually today down nearly 30% on where they were only 2 weeks ago.
We are boned anyway, we have no money.
I have a coin jar beside my bed...
perhaps the Greens (Mary White) would bring in a tax to take say 50% of peoples coin jars?
go Mary Go! tax our coin jars....
you could raise €13 gazillion euros ...
FT.com / Brussels - ECB set for record ?stimulus by stealth?
Looks like the ECB also want to bail out all EU banks. Also looks like this is an action in advance of the downward leg of the W to try and mitgate effects. (thinks : was that why George W Bush had a dubbleya) If banks are going to be getting such enormous support they are unsinkable. However I expect the market will take a bath in the next few weeks so all prices to fall. With second round QE inflation must be a dead cert and second rally will be very large. I think gold will be depressed to around the 800 mark but should do nicely when inflation gloves come off.
Gives the lie to them wanting to protect the systemic banking system, when that could be done while writing off share capital and bondholders capital against losses...that's what it's there for after all. so much for capitalism! Bank shares are now risk free!
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