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Where are the balls?

September 23rd, 2008

On the BBC news Site Bail-out fears return to markets. The markets are apparently rising on bail-out hopes. Now just wait a minute, I though the whole idea of business was to take a risk and therefore have the potential to make more money than if you left you money in some safe bank account (not that banks are living up to that reputation currently). Now it appears you can have gravy as well have the government bail you out when it all goes pear-shaped. Something is wrong and smells very fishy (with apologies to the fish among you).

What hurts the most is that it is the very institutions that have been printing money for years, the banks, that are benefiting from tax payers' cash!!! The very same people who screwed over the ordinary man in any which way that are the beneficiaries of the governments' hysterical saving of the markets. I am sure somewhere in the recent past, some Russian trader became a billionaire when Governments tried to shore up a sinking ship. Trust me some other billionaires are in the making as I write this. All those pathetic attempts are stopping shorting etc are wasted, it is those feeling the pain that are bleating as they watch others milking it.

Now don't get me wrong, I intend to invest in companies in the stock market, my pension which I am warned can go up or down is beholden to it but I understand it quite simply, there is a risk that I may lose some or all of my investment. Not very difficult is it? If I did not want that, then my best bet is to consume all my income immediately, is it not?

Now the ones that have just enough muscle to survive a tough time are setting themselves up for more of the good stuff in the future - Bye bye bulge-bracket and Barclay's picking up of cheap assets. When all this is over, there will be less for the consumer to choose from and the gravy train will be groovy.

Damn, why don't I own a bank?

[First published on my NotTheNews blog on specified date]