http://www.economicshelp.org/blog/economics/nationalisation-of-uk-banks/ Economics Blog - current events and economics essays Thu, 18 Mar 2010 19:46:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.economicshelp.org/blog/economics/nationalisation-of-uk-banks/comment-page-1/#comment-1598 Peter Barnett Thu, 09 Oct 2008 07:53:07 +0000 http://www.economicshelp.org/blog/?p=745#comment-1598 tejvan - While I appreciate that; there 'may' come a point at which the shares could be sold back at a 'notional' profit. My cynicism says that this 'profit' will not represent the return that a 'lender' should expect in such a transaction? tejvan – While I appreciate that; there ‘may’ come a point at which the shares could be sold back at a ‘notional’ profit. My cynicism says that this ‘profit’ will not represent the return that a ‘lender’ should expect in such a transaction?

]]> http://www.economicshelp.org/blog/economics/nationalisation-of-uk-banks/comment-page-1/#comment-1597 tejvan Thu, 09 Oct 2008 07:21:11 +0000 http://www.economicshelp.org/blog/?p=745#comment-1597 Certainly the government is only investing in banking shares out of desperation. In normal times investing in banking shares would be the last thing it would want to start doing. But, the main motivation is not the level of return, so much as trying to secure the future of the banking sector and hence economy. Certainly the government is only investing in banking shares out of desperation. In normal times investing in banking shares would be the last thing it would want to start doing. But, the main motivation is not the level of return, so much as trying to secure the future of the banking sector and hence economy.

]]> http://www.economicshelp.org/blog/economics/nationalisation-of-uk-banks/comment-page-1/#comment-1592 Peter Barnett Wed, 08 Oct 2008 22:50:25 +0000 http://www.economicshelp.org/blog/?p=745#comment-1592 What level of return is needed to compensate for the cost of lending 'borrowed money' in the first place? We must know the interest that we are paying on this borrowed money? Also if we actually had this money, aren't we also 'losing' the return we could have had by investing it elsewhere? What level of return is needed to compensate for the cost of lending ‘borrowed money’ in the first place? We must know the interest that we are paying on this borrowed money? Also if we actually had this money, aren’t we also ‘losing’ the return we could have had by investing it elsewhere?

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