Monday, October 06, 2008

Meanwhile in the city

Gold is up and the markets are down.

Gold leapt today from $839.00 to $863.15 per ounce

And a mere £93 billion vanished from the share value at the stock exchange. All this government action is sure filling the markets with confidence.

And what are the Tories saying. Charming George Osborne has come up with this,
"asked Alistair Darling whether he agreed that banks which pay out dividends instead of rebuilding balance sheets should be held to account by regulators".
I must be stupid, but surely they will only pay dividends if they have profits. Thus they don't need to be regulated in this way.

1 comment:

wonkotsane said...

Good to see you back in the land of blogging.

Banks will only pay a dividend if they make a profit but the amount of the dividend paid might be over the odds to attract investors and inspire confidence - after all, a bank wouldn't pay out a large dividend if its books were a bit on the light side ... would they?