Thursday, March 19, 2009

Capital Issues down....UK!

Well, no one has any money, so, I guess capital market issuance would be down--if you know demand would be weak, why would you put out an IPO? Also, you do not want to send out signals that your company, is in need of cash through IPO. In addition, and more importantly, stocks are being devalued so the prices are lower and hence, the net total of issuance is and would be down. Among other things.

Shareholders are losing value, ever increasingly. Another sign of devaluation. In fact, it is already happening. I don't know why Economists just don't admit it and get it over with. They most likely put a muzzle on the Doomsdayer, Roubini.

Tables and graphs from the BOE on gross and net capital issues for UK residents...






What would also be nice is if we could have seen the amount of purchasers by ratio of the purchases? For example, if 20 thousand people bought $100 billion worth of shares last month, compared to 10 thousand people who bought $20 billion shares.

The way figures like that and in particular the example I just explained, would show us the concentration in the market for people who have the money, compared to the people who don't have the money--ie, if 10 thousand persons less are buying 20% of the bonds/shares than from the previous month, this would show that a select few investors are snapping up deals and cornering the markets.

This would be as much of a problem as inflationary pressure on stocks, moving forward.

The BOE has to do more to support business. I for one appreciate the depreciation of those grossly overpriced stocks, anyways. A correction was more than needed. But, there must be a way to stop it, rather than just letting the bottom hit the floor--so to speak.

What do you suggest? Can't be just a liquidity problem for the companies, it's a purchase and investment issue. Perhaps they can court investment in UK companies to Chinese and other emerging market investors?

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