Get out Now
our wonderful Gordon, nor any other commentator must be allowed to get away saying that the banks are going to be bailed out by the government by buying shares, and having a stake.
These are not shares, as we know it, they are preference shares, and that is totally different. Preference shares with no voting rights attached. The worst of all worlds.
If you had direct shareholdings then you are the lowest of the low if the organisation goes bust. So shareholders lose out. No problem. However, they can prevent this happening by having votes, they can decide the dividend policy, they can vote against huge remuneration packages, they can sack the board if they so wish to do. They have power, even if they don't use it. It is there.
However, what the government is proposing is that the taxpayer puts money in, but has neither power, nor responsibility, they may have influence but we all know that can be a double edged sword.
The government, if it is to put money in , then it has to have direct control, anything less is an absolute travesty. I know that this may result in mistakes being made by whoever is in charge will be able to blame government interference, but they could resign if they don't like it. I would say that an honourable person would resign, without compensation, but that would invlove being principled.
In the meantime, all they may say is that I was just following orders, just like the soldiers of a certain country which committed atrocities and the people below the leader pleaded their innocence on the basis that were just following orders. Well, I think that it is time for people to stand up and be counted, no investment without representation.
It is no wonder that Stock Markets throughout the world are collapsing, this is 1928, not 1929, just wait until next year, when everybody will be told you should have sold last year whilst you had the chance, at least there were some idiots who would have bought your shares, now everybody can see how stupid you were to hold on.
These are not shares, as we know it, they are preference shares, and that is totally different. Preference shares with no voting rights attached. The worst of all worlds.
If you had direct shareholdings then you are the lowest of the low if the organisation goes bust. So shareholders lose out. No problem. However, they can prevent this happening by having votes, they can decide the dividend policy, they can vote against huge remuneration packages, they can sack the board if they so wish to do. They have power, even if they don't use it. It is there.
However, what the government is proposing is that the taxpayer puts money in, but has neither power, nor responsibility, they may have influence but we all know that can be a double edged sword.
The government, if it is to put money in , then it has to have direct control, anything less is an absolute travesty. I know that this may result in mistakes being made by whoever is in charge will be able to blame government interference, but they could resign if they don't like it. I would say that an honourable person would resign, without compensation, but that would invlove being principled.
In the meantime, all they may say is that I was just following orders, just like the soldiers of a certain country which committed atrocities and the people below the leader pleaded their innocence on the basis that were just following orders. Well, I think that it is time for people to stand up and be counted, no investment without representation.
It is no wonder that Stock Markets throughout the world are collapsing, this is 1928, not 1929, just wait until next year, when everybody will be told you should have sold last year whilst you had the chance, at least there were some idiots who would have bought your shares, now everybody can see how stupid you were to hold on.
posted by Catch22 at 5:30 AM
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