i think PAP might be right on this, buying up a bank has enormous benefits in the long run.
what is the use of buying a bank which does not have money of its own? great, a few billion for a financial institution which does not have much money to spare.
yet agian, u are not seeing the point, The Merryll Lynch venture and other attempts like Shincorp , i suspect is related to the the new CPF reforms like Annuity,
If they buy into banking sectors, it will ensure a constant flow of revenue to pay for many things like the CPF Annuity.
So i don't think we should critisize them for doing so.
any comments, folks?
If they buy into banking sectors, it will ensure a constant flow of revenue to pay for many things like the CPF Annuity.
How?
I'm not so sure sinking money into an empty shell is a smart strategy to ensuring a constant flow of revenue......no ?
buying a good bank cost lots of money...
buying a moderate bank will cost less money, and you will need to reform it's mechanism to make it work again.
think that is the plan... but whether it will work, or whether this is a good buy, i can't tell.
Meryll Lynch is a strong name.
Originally posted by SPLIT SECOND:Meryll Lynch is a strong name.
Uh .. Barings bank also a very strong name.. and it collapsed in 1995 due to Nick Leeson.
So what has a strong name gota do with it ?
I think Meryll Lynch is a logical investment. Buy in when low. This is what I do as with many people, buy in stocks when low. Because when the economy is not doing well, all the prices are at a discount. This is what I do with my stocks, instead of selling off, I buy in a couple more lots to capitalise on the laws of averaing. This is like buying properties, buy in a bad time in low prices, sell off when the economy rebounds. So, logically, the best time to invest those extra money is now. I do agree from an investment point of view, buying into such a big bank with good potential to rebound when the economy rebounds is a good business decision. Investing in such economy has one rule, it is the holding power you have.
However, as with such big investments, anything can happen, the bank may go bust or it may rebound. Only time will tell.
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