Ya know, Haussmann looked awfully like John Banks.
The lesson I took from it was to avoid Mercedes sedans. Oh, and Paris.
- when coked off your head, make sure the guy driving isn't as munted as you are
- unflattering photographs rarely kill anyone
- in a republic, at least you get to elect the lunatics
imagine Wellington's entrance as only the Old Hutt Road funneling through Aotea Quay today?
I'd prefer a big car park up by the Cake Tin and a $10 charge if you want to advance further by car.
profit:shareprice is a bizarre measure. Sorry.
You're welcome to think that. It's the one I prefer (it equates to the P/E ratio, just the other way up). The market capitalisation is the best indication of what the whole business is worth - what people are willing to pay for it. It directly translates into ability to pay a dividend.
If I buy some shares, then I'm interested in what dividend they pay and in the chances of growth or decline in the value of the business. Banks have a limited upside, big downside and a fairly high return. Apple has a big upside, limited downside and a fairly poor return.
Your 20% figure (return on ordinary equity) ignores the goodwill in the business. Anyone buying shares has to pay for that goodwill, so it's included in the return.
Imagine I buy a (leased) pub for $80k. The stock and fixtures are worth $30k, and I put $20k in the bank as working capital. The pub thus has tangible assets of $50k. It makes $5k a year. Am I making 10% (return on assets) or 5% (return on my $100k investment)?
Being able to lend one dollar to twenty different people at once is pretty lucrative, though we tend to get suckered into looking at the interest charge to only one of those people.
You misunderstand fractional reserve banking, like a lot of people.
The bank has to pay interest on *all* those dollars. Banks make their money on the margin between the rate they can lend at and the rate they have to pay on deposits.
Ok, here are some numbers:
(ANZ, 2006 - AUD3.6bln profits on AUD49bln market value = 7.3%
Woolworths, 2006 - AUD1.0bln profits on AUD22bln market value = 4.5%
Apple, 2007 - USD3.5bln profits on USD105bln market value = 3.3%)
ANZ made about 50% more than Woolworths - but the stock price tanked (supermarkets are pretty recession proof).
Apple made only half as much, but they've got much more growth potential.
I don't believe buying bank shares is the route to riches.
I think a lot of bollox is talked about banks. Sure, they make a lot of profit, but so do (equally foreign owned) supermarkets, telcos and breweries.
If you look at returns, bank profits aren't out of line with other businesses. Assuming that one accepts capitalism in general, why should banks be singled out?
If we don't accept capitalism, we should get essentials like food and housing under community or cooperative ownership as well as banking, IMHO.
That's certainly how the Nazis did it
What, the actual, German, Nazis? I thought that their methods for dealing with recalcitrant party factions were a bit more agressive than stacking meetings?
Can you suggest a better system?
One member, one vote?
Average wage or median wage?
Mean I guess.
(Ideally, i'd support a completely open border. However, in the present world, it's likely that employers would import cheap workers if we had no form of wage/skill floor. Also, it's not in the best interests of migrants to encourage them to come here when we haven't got good jobs for them).