Kommentarer til: 12th Jan – Weekly outlook on the Stock Market, China, Currencies and more http://getmarketsright.com/financial-markets/12th-jan-weekly-outlook-on-the-stock-market-china-currencies-and-more-166.htm Thu, 22 Jan 2009 23:45:28 +0100 http://wordpress.org/?v=2.8.4 hourly 1 Af: Peter http://getmarketsright.com/financial-markets/12th-jan-weekly-outlook-on-the-stock-market-china-currencies-and-more-166.htm/comment-page-1#comment-1627 Peter Tue, 13 Jan 2009 20:42:25 +0000 http://getmarketsright.com/?p=166#comment-1627 Dear Mike, Very good questions. 1. I am not sure that governments can do so unless they force the banks. It would require a majority stake in the banks. The UK solution, where the UK government demands the banks to allocate lending in certain directions. It's not unlikely that some US banks ends in government ownership because the investors soon have lost the appetite for financial stocks - like in UK. 2. If money are allocated as you ask about, it is a de facto increased lending to private households. Short term it helps, but the outstanding amounts to write off for banks are enormous so very fast we will be back to reality. In case, same for the stock market - a small upturn and then lower. Sorry not to sound more optimistic but the world is still correcting - lower... Good luck Peter Dear Mike,

Very good questions.

1. I am not sure that governments can do so unless they force the banks. It would require a majority stake in the banks. The UK solution, where the UK government demands the banks to allocate lending in certain directions.
It’s not unlikely that some US banks ends in government ownership because the investors soon have lost the appetite for financial stocks – like in UK.

2. If money are allocated as you ask about, it is a de facto increased lending to private households. Short term it helps, but the outstanding amounts to write off for banks are enormous so very fast we will be back to reality. In case, same for the stock market – a small upturn and then lower.

Sorry not to sound more optimistic but the world is still correcting – lower…

Good luck

Peter

]]> Af: Mike Farris http://getmarketsright.com/financial-markets/12th-jan-weekly-outlook-on-the-stock-market-china-currencies-and-more-166.htm/comment-page-1#comment-1616 Mike Farris Tue, 13 Jan 2009 02:12:08 +0000 http://getmarketsright.com/?p=166#comment-1616 What do you think will happen if the government requires banks use the money for foreclosures? Do you think it will help the economy and the stock market? Thanks, Mike What do you think will happen if the government requires banks use the money for foreclosures? Do you think it will help the economy and the stock market?

Thanks,
Mike

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