At a time when we're reading about all the upcoming cuts proposed for Budget 2012, the proposed stealth taxes and levies, if this doesn't stir the blood nothing will. €1.5bn senior unsecured due next Thursday, and will be paid; think of the number of small businesses whose viability that could secure if AIB were instead to put that money into circulation. But it won't; money goes to pay off a failed bond, money our government - that's us - 'injected' into AIB only a few weeks ago.
Changing the format this week; on the basis that's what gone is gone, the Dirty Dozen will in future be the next 12 bonds due to 'mature', the next bond being the one highlighted in red.
First, let me introduce myself or better to say, my knowledge about financial markets: on the scale from 0 to 10, it's 0.1. I know it exists :) and I played with stocks at some point of my life. Probably some luck, but I didn't lose. Based on my understanding, I am putting bonds into the same bucket as stocks; if you are playing with them, be ready to lose all and don't invest more than what you are ready to lose. That's why I don't understand why banks have to pay off the bonds if they don't have that money.
ReplyDeleteI would really appreciate if you might write a post explaining what would happen if these banks wouldn't get all these billions to cover for bonds. Is it something extremely negative for our country or this is happening just because one small influential group of people decided to cover for each other (i.e. government for banks) on our account. I am asking because the investments you are mentioning sound very right.
Thank you!
This is really good / sickening information, well done and keep it up.
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