why don't banks issue trillions of new stock?

Discussion in 'Trading' started by chanster, Nov 30, 2007.

  1. 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
  2. It would make the existing stock worthless. Its called dilution.

    This is Econ 101.
  3. I think you might have skipped Sarcasm 101. :)
  4. nealvan


    They would end up being listed in the otcbb.
  5. That's the way they do business here ...

  6. ... and here

  7. ... now believe me.

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

  8. 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!
  9. timbo


    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.
  10. 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?

    #10     Nov 30, 2007