Comments on: Lunchtime Links 6-4 http://blogs.reuters.com/rolfe-winkler/2010/06/04/lunchtime-links-6-4/ Option ARMageddon Thu, 09 Aug 2012 01:58:02 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: cuddyent http://blogs.reuters.com/rolfe-winkler/2010/06/04/lunchtime-links-6-4/comment-page-1/#comment-5656 cuddyent Sat, 05 Jun 2010 10:10:13 +0000 http://blogs.reuters.com/rolfe-winkler/?p=6304#comment-5656 The Euro was worth about .87 just a few years ago. Why should it surprise anyone that it is headed back that way? The survival of the EU is itself in doubt. The Euro was worth about .87 just a few years ago. Why should it surprise anyone that it is headed back that way? The survival of the EU is itself in doubt.

]]> By: Beezlebufo http://blogs.reuters.com/rolfe-winkler/2010/06/04/lunchtime-links-6-4/comment-page-1/#comment-5652 Beezlebufo Fri, 04 Jun 2010 18:13:44 +0000 http://blogs.reuters.com/rolfe-winkler/?p=6304#comment-5652 15%!!! zomg! Even if you expand that to tier 1 capital, that'd bring the economy to a halt like a train jumping the tracks. Most banks would either have to halve their assets or double their tier 1... which would dilute existing stockholders, well, 100% if we're assuming its all common. I'm sure everyone who owns BAC, et al (or, eveyone with a mutual fund) would be thrilled to see the massive transfer of wealth from the middle class investors to the wealthiest of wealthy investors (china, oil sheiks anyone?), the only people who would have the cash or liquid assets to fund those sorts of stock issuances. In addition, banks would probably either continue to trim payrolls and/or cancel hiring plans and would certainly dramatically increase the interest yield they were looking for. 15%!!!

zomg!

Even if you expand that to tier 1 capital, that’d bring the economy to a halt like a train jumping the tracks.

Most banks would either have to halve their assets or double their tier 1… which would dilute existing stockholders, well, 100% if we’re assuming its all common. I’m sure everyone who owns BAC, et al (or, eveyone with a mutual fund) would be thrilled to see the massive transfer of wealth from the middle class investors to the wealthiest of wealthy investors (china, oil sheiks anyone?), the only people who would have the cash or liquid assets to fund those sorts of stock issuances.

In addition, banks would probably either continue to trim payrolls and/or cancel hiring plans and would certainly dramatically increase the interest yield they were looking for.

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