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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: arun gera who wrote (25287)	11/15/2007 9:29:28 AM
From: Maurice Winn	Respond to of 217705

Arun, the NZ government bailed out the Bank of New Zealand shareholders in the late 1980s too. It was a rort. Taxpayers' money should NOT have been given to the shareholders. Neither should British taxpayer money be given to Northern Rock shareholders. The way to do it is to say to the depositors that the government will take over the bank when the shares reach $0. When the shares have value, the situation is obviously not dire enough to require help. Let the shareholders who mismanaged the company lose their money. That won't hurt the financial system. Shareholders are risk carriers and the risk is that they lose their money. Let them. But even saving the bank at all is questionable and probably more of a political move to keep the electorate happy, than a financial system protection. Depositors are voters and they get grumpy if they lose their money in a "safe" bank, regulated and controlled by the government which is supposed to make banks safe. Or claims to do so. Governments don't represent the collective. They represent a segment of it which supports them. The rest are cannon fodder to be cannibalized. Yes, they do have the collective function in management of the commons, but most of their function these days is kleptocracy, repression, nanny-stating. Mqurice