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Three Reasons Bank Nationalization Will Keep Investors Awake at Night
Money Morning ^ | February 27th, 2009 | Martin Hutchinson

Posted on 03/01/2009 12:49:18 PM PST by An Old Man

It’s a tough time to be a bank shareholder. You’re not just worrying about whether the ongoing recession or a further lurch downwards in housing prices is going to decimate the value of your bank’s loan portfolio. You’re also worrying about whether some government “stress test” or – worse still – nationalization is going to destroy most or all of your investment’s remaining value.

And finally, if you’re smart, you’re worrying about whether some cockamamie government loan scheme is going to artificially force down the nice juicy interest margins your bank is earning on the new loans it makes.

Clearly, when it comes to bank nationalization, there’s more to be worried about than most investors realize.

Reason No. 1: Nationalization Distorts the Marketplace
Reason No. 2: Nationalization Creates Artificial Support
Reason No. 3: Stressed Testing Could Overstress Weak Players

If the recession isn’t already keeping investors awake at night, the government actions certainly will …


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: 111th; banking; bho44; moneylist; nationalization

More Cheerie News

Sleep well tonight for tomorrow the Government may own your Bank.

1 posted on 03/01/2009 12:49:19 PM PST by An Old Man
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To: An Old Man

Reason 4: The ones who got us in this mess now run the banks.


2 posted on 03/01/2009 12:50:53 PM PST by DBCJR (What would you expect?)
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To: An Old Man
Here's my main reason...because if I invest in marxism, I invest in ruin, including my own.

THE AUDACITY OF TRUTH ABOUT BARACK HUSSEIN OBAMA

BARACK HUSSEIN OBAMA IN HIS OWN WORDS

NOW WE KNOW WHAT A COMMUNITY ORGANIZER DOES

OBAMA, THE STOCK MARKET, AND ENERGY

THE AUDACITY OF TRUTH ABOUT BARACK HUSSEIN OBAMA'S UPBRINGING

IT'S TIME FOR A RETURN TO THE OLD SCHOOL

3 posted on 03/01/2009 12:52:01 PM PST by Jeff Head (Freedom is not free...never has been, never will be. (www.dragonsfuryseries.com))
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To: DBCJR

Yep, and they back the trucks carrying the fiat money up to the back door, while telling everyone out front that everything is fine.

And the beauty, no one can figure it out until it’s too late.

Wasn’t the fed supposed to prevent this?


4 posted on 03/01/2009 12:53:14 PM PST by Tarpon (It's a common fact, one can't be liberal and rational at the same time.)
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To: Tarpon

Reminds me of the semi’s backed up to the Central Bank in Bagdad. Hundreds of millions of dollars went to Syria in those days, maybe with the WMDs.


5 posted on 03/01/2009 12:55:17 PM PST by DBCJR (What would you expect?)
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To: An Old Man

My small independent bank is having a private stock offering, not because of poor condition or perfomrance, but to permit growth and future expansion plans. Our asset quality and profits are fine.

Talk of nationalization is scaring some investors away. We are NOT taking TARP capital. For us, the leftist agenda is causing a problem because we need the capital to move forward and the Obama adminsitration/looney liberal Congress is spooking our investors a lot more than the economy is.


6 posted on 03/01/2009 1:50:19 PM PST by RatRipper (Opposing the leftists for my family, my friends, and for me.)
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To: RatRipper

Hank in there, we need more people like you.


7 posted on 03/01/2009 1:57:44 PM PST by An Old Man (Use it up, Wear it out, Make it do, or Do without.)
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To: An Old Man
Hank = Hang
8 posted on 03/01/2009 1:59:13 PM PST by An Old Man (Use it up, Wear it out, Make it do, or Do without.)
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To: An Old Man

Will do. Thank you, sir.


9 posted on 03/01/2009 2:03:43 PM PST by RatRipper (Opposing the leftists for my family, my friends, and for me.)
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To: An Old Man

Money soon may not be worth the paper it is printed on.


10 posted on 03/01/2009 2:29:43 PM PST by JamesA (He who hesitates is lost.)
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To: An Old Man

The banks will NOT be nationalized. Too many Clintonites (Ruben, etc.) will lose millions of dollars (stock holdings). No way.


11 posted on 03/01/2009 3:24:23 PM PST by randita (Starve the beast - earn as little as you can get by on and spend even less.)
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