That's a great letter; it's the most lucid and clear analysis of this situation that I've read in a while.
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Well if the g20 says to nationalise the banks,the big question is why are our gov. going on their present path.
There is a huge flaw in the nationalisation argument. Supporters of nationalisation justify it on the basis that as the State will own the banks, it will be able to sell them for a good price at a later date to recoup its money. This would work fine if we were the only people doing this - the big flaw is that most of the developed world has nationalised banks for the same reasons and is intending to sell them off at a similar time. The glut of of nationalised banks on the markets will mean that there will be zero chance of recouping any meaningful amount of money - simple supply & demand economics.
... As financial institutions, banks need to operate in the real world, not the public sector.
As financial institutions, banks need to operate in the real world, not the public sector.
Please explain. It is widely accepted that nationalisation would mean the State acquiring the banks for almost Nil. The State is going to get the toxic assets anyway but the difference between the current approach and nationalisation is that in the former the existing shareholders will be left with windfall value of about €5Bn which should be the taxpayers.You may argue that NAMA might pay over the odds for property, but we can be 100% certain that any Government that has nationalised HAS paid way over the odds.
Please explain. It is widely accepted that nationalisation would mean the State acquiring the banks for almost Nil.
It boggles the mind given the financial scale of the problem that the government are unable to articulate what they are doing in such terms.
If there is no market; they are not worth anything..The market value is meaningless because there is no market.
But I am not selling it, ....Now let's say that I have to sell it ....The market value today is probably around €1m if I can find a buyer. ... The market value is probably around €500k..... I would say €1.2m
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