Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (13898)	3/16/2013 12:30:33 PM
From: ggersh	3 Recommendations Respond to of 33421

Yes it would have but still way over the top, as the depositor had no choice. "Think it would been better to force that 10% deposit/loan into a special trust that must be paid back, but could not be withdrawn for a period of time.. Like a CD.." I think it was only yesterday AG said.... Greenspan said the current stock run is due to reduced fears that the European sovereign debt crisis would crash economies around the world. He also seemed to dismiss the idea that the Federal Reserve's asset purchase program is responsible for driving stocks higher.

To: Hawkmoon who wrote (13898)	3/16/2013 10:14:13 PM
From: Elroy	Respond to of 33421

Think it would been better to force that 10% deposit/loan into a special trust that must be paid back, but could not be withdrawn for a period of time.. Don't the depositors get equity in the bank in return for the amount that they've paid in tax? That's my understanding. The key then is the price at which they get the equity. If fair value, they can theoretically sell it right away and get their cash back, Of course if all of them do this, the equity value may decline :-) What they should do is take the tax payment from the depositors, and give them bank equity at the share price two weeks from today. That allows the market to figure the fair value of the equity, and gives the depositors back their lost/taxed deposits in fairly priced equity. Of course the bank stock would dilute tremendously hurting existing equity holders, but that's OK, they are the ones who owns shares in a bankrupt bank and should suffer the loss.