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coalition

How should the UK react to the proposed new EU treaty

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[QUOTE=coalition;388516]Now lets see what Droopy Cameo was protecting.

[IMG]http://harvardmagazine.com/1999/05/art/images/dhead.gif[/IMG]






The City:
The only other possible comparable event to the destruction of our financial integrity is the 1720's South Sea Bubble;

The values of the famous Subscription Shares issued by the South Sea Company in
1720 have to be split into two components before they can be understood. One
component was a fractional claim upon one original share in the firm. The other
component, however, was a bundle of share warrants. The information contained in
share warrant values is potentially helpful in understanding the South Sea Bubble.
Warrant values might also be especially sensitive to "events" and "news" and could
provide new ways of marking the turning points in the South Sea Bubble and testing
for efficiency of markets. The level and volatility of subscription share prices are both
consistent with the hypothesis that the subscription shares were essentially share -A to show that there is nothing new in the means and ways that The City use to Con people out of their money:

At the height of equity values in late June 1720, subscription shares accounted for at
least 10 percent of all South Sea Company equity value.
3
They were issued to meet
the immediate cash needs of the firm. Some of the cash would have had to be used in
the exchange packages the Company was offering to government annuitants, but by
far the largest use of the cash was in the form of loans to shareholders who were
pledging their shares as collateral for loans.

4
Warrants. Oh dear, cousins of the modern day Derivative toilet paper, which, who would doubt it, have also gone the same way.
Straight shares and warrants embedded in the subscription
shares we can account for, but this is not where the accounting of South Sea share
warrants will end. The Company was also engaged in a substantial programme of
loans to shareholders that it hoped would somehow support the market value of
shares. In running this programme the Company was quite busy in handing out share
conversion privileges (warrants) to privileged recipients of these loans. These
warrants were not traded and so direct observations of their values would not be easy to
obtain.
We're paying for them...again, so someone better bloody find out, how much.

[COLOR=#000000][FONT=Times New Roman]Irrational exuberance pervades the stock market. Speculators pay ever-higher prices for shares despite scant evidence of underlying value. Skeptics warn that the bubble will burst. This must be England in 1720.[/FONT][/COLOR]
[COLOR=#000000][FONT=Times New Roman]The South Sea Company was founded in 1711 by Robert Harley, who wished to create political allies. [B]The leader of the Tory party [/B]and soon to be lord treasurer, Harley wanted an end to the unpopular War of the Spanish Succession. The South Sea Company, as set up by act of Parliament, had a monopoly to conduct England's trade with Spain's colonies in the West Indies and South America. Harley advanced the notion that permission to conduct such trade would be ceded by the Spanish king as part of the price of peace.[/FONT][/COLOR]
[COLOR=#000000][FONT=Times New Roman]The company had the further splendid purpose of relieving the government of its burdensome unsecured public debt--obligations for which Parliament had assigned no funds--which then amounted to 9,000,000. South Sea was organized under the newish joint-stock principle, as a corporation with transferable shares. [B]Holders of the national debt were obliged to exchange their government securities for shares at par in the company.[/B] The company could raise working capital--a huge amount of it--by borrowing on the security of the debt due from the government. In addition to its trade monopoly, the company would get an annual payment from the Exchequer of 568,279 10s., or 6 percent of the debt taken over. Stockholders had no promise that they would see any of this as dividends, but who could blame them for thinking that capital gains based on trading profits were a certainty?[/FONT][/COLOR]
[COLOR=#000000][FONT=Times New Roman]It was an optimistic age. People had a passion for business and followed developments avidly through a newly burgeoning medium, the newspaper. In 1702 London had one daily newspaper; by 1709 there were 18. Harley had able propagandists, Jonathan Swift and Daniel Defoe among them. (Critics included Joseph Addison and Richard Steele.) The managers of the South Sea Company understood the value of publicity (as well as fine print) in the advancement of their affairs and once issued a press release, surely an early example of that genre.[/FONT][/COLOR]


Well, wouldn't you know, its still going along quite smoothly except, its the pension funds and taxpayers who are supporting the Bubble. Exactly what has changed in 290 years. The City and Politicians are still swindling us.[/QUOTE]
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Comments

  1. angelcountry's Avatar
    There's already an existing opt In and Out Option based on acte clair isn't it ?