why don't banks issue trillions of new stock?

chanster · Nov 30, 2007

since stock markets seem to love bad news from banks teetering on bk to teachers endangered of not getting pay checks in florida why not just issue trillions of new stock?obviously the market will buy the stock. it will solve all are problems

Jayford · Nov 30, 2007

It would make the existing stock worthless. Its called dilution.

This is Econ 101.

Longhorns · Nov 30, 2007

Quote from Jayford:

It would make the existing stock worthless. Its called dilution.

This is Econ 101.

I think you might have skipped Sarcasm 101.

nealvan · Nov 30, 2007

They would end up being listed in the otcbb.

JimmyJam · Nov 30, 2007

That's the way they do business here ...

JimmyJam · Nov 30, 2007

... and here

JimmyJam · Nov 30, 2007

... now believe me.

You sure as hell don't want our economy to be like theirs!

JJ

sellingrich · Nov 30, 2007

I get a letter at least once a week from some guy in Africa that has a box/inheritance/contract/over payment/atm card/, that place is swimming in money!

timbo · Nov 30, 2007

It's not bank failures per se, but the fed's actions to protect them that excites the markets. No need to issue shares; create cheap money and make show dogs.

JimmyJam · Nov 30, 2007

Quote from sellingrich:

I get a letter at least once a week from some guy in Africa that has a box/inheritance/contract/over payment/atm card/, that place is swimming in money!

LOL man, they don't even have bread in some parts of the country! ... and don't get me started on the USSR, can you say no toilet paper?

Certainly puts things in perspective, now don't it?

JJ