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Tuesday, January 06, 2009
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| PricedOut Discussion
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Asteve
Activist
Posts:930
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| 07/10/2008 1:43 PM |
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I seriously you you-all are going to be up bright-eyed-and-bushy-tailed tomorrow at 7am to listen to Darling badger-features.
Would you like everything to turn kind-of Swedish (Norwegian or Finnish) now, or would you like a touch of moral hazard?
This is, of course, if you can stop laughing at the woman on the BBC who's lost half her life savings by trusting them to Icesave (the Icelandic bank) because you get over reliable retail risk-free investments paying over LIBOR all the time.
Come-on, you'd find it difficult to roll-around laughing your socks of if this were serious.
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chefdave
Activist
Posts:481
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| 07/10/2008 2:07 PM |
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So we're going to invest £50bn and become stake holders in a number a major high street banks.
2 questions. 1, where is the money going to come from? If the BofE are going to lower rates this week attracting foreign investment becomes more tricky.
2, Is this going to be enough? By the looks of it RBS have already burnt through 12bn and they've got their begging bowls out again, they can't expect the same again if this £50bn has to be split so many ways. |
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Asteve
Activist
Posts:930
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| 07/10/2008 3:12 PM |
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1... We don't know if it is going to be £50bn - that's just a number Peston pulled from thin air as 'plausible in scale'... In all likelihood, the money to re-capitalise will come from the issue of treasuries. This has a relation to interest rates - but it does not follow that increased treasury yields imply increased interest rates... the relationship between the two is somewhat more complicated.
2... Good question. It will likely be enough if the consensus tomorrow morning is that it is enough... I think this means that we should anticipate the annihilation of shareholder value where the government grants capital - along with other stringent demands. If this isn't enough, of course, having broken the taboo, the government could easily offer more capital in a new 'rights issue' - assuming we don't experience a systemic failure of currency and a bond market crisis.
Chin-up, it might never happen.... (Whoops... never mind.)
I'd love to be able to shout that on the 6:30am commuter tube to the square mile tomorrow.
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lazen
Activist
Posts:326
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| 10/10/2008 2:07 AM |
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It only affects petty bourgeois idiots.not all UK |
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Asteve
Activist
Posts:930
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| 12/10/2008 5:51 AM |
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Lazen, I hate to break it to you, but we are all affected by the petty bourgeois idiots.
P.S. Would you mind toning down your language about race. I realise that you were pointing out that those who are obsessed about such issues are mislead... but I'd prefer this is done using less incendiary language. I'm certain that stereotypes and prejudice have a lot to do with this crisis - especially in the context of credit rating - but I see the errors to be entirely on the part of those who choose to exploit pejorative memes for their own selfish ends.
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