The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label shares. Show all posts
Showing posts with label shares. Show all posts

Tuesday, May 30, 2017

The future of funding companies could shift from stock and IPO's to crowdfunding and cryptocurrency token ICO's

With the blockchain suddenly becoming much more than simply a platform able to run the over 700 different cryptocurrencies, there is growing talk that the technology may also be the catalyst to replace how companies receive funding in the future.

Today most startup companies rely upon venture capitalists and brokers to grow to the point where they can apply for an Initial Public Offering (IPO) on a given market exchange.  And in exchange for cash, investors receive stock shares in that company.

But a few recent events are providing a conduit for businesses that may no longer require stock exchanges at all to receive capital, and the rewards to investors may come in the way of cryptocurrency tokens rather than in the old form of shares and stock certificates.

Ever since Bitcoin first appeared on the scene several years ago, fans of the cryptocurrency have been searching for a way to apply the idea that might capture the public imagination and broaden the use of the technology beyond just geeks and programmers. 
Now, some believe that application has appeared with the rise of the "token" economy, in which companies or startup ventures fund their operations by handing out units of cryptocurrencies. Some companies have even done what are known as "initial coin offerings" or ICOs, in which they distribute tokens instead of shares to investors. 
The cryptocurrency market is seen by some as a bubble with hugely inflated prices. Some observers say bitcoin and other similar ventures are similar to Linux, an open-source alternative to Microsoft's Windows operating system that has never really achieved mainstream success. 
But entrepreneur and investor Balaji Srinivasan, a partner at Silicon Valley venture capital firm Andreessen Horowitz, believes that token-based systems "may eventually create and capture more value than the last generation of Internet companies." - Fortune
Ironically it may have been actions taken by the banks themselves following the 2008 finance crisis that could see the demise of the traditional way in which companies receive capital to expand and grow.  This is because most commercial banks have shut off lending to small businesses and projects that would have otherwise been their bread and butter in the past, and this has led to the creation of capital sourcing through mechanisms such as Crowdfunding over the past eight years.

With the advent of Initial Coin Offerings (ICO's) being used in place of Initial Public Offerings (IPO's) to fund new enterprises, markets could be seeing the beginning of a new paradigm shift, where stocks no longer hold the same value as they did in the past, and where cryptocurrency tokens replace them as the asset for short and long-term investment.

Tuesday, July 26, 2016

World's oldest bank shares halted as the company stands on the brink of collapse

It is indeed troubling when a bank that opened its doors 20 years before Christopher Columbus discovered America, and went on to survive two world wars, the turbulent times of Roman church inquisitions and religious reformations, the renaissance, colonialism, and of course, the conflicts that unified Italy itself, now stands of the brink of bankruptcy 544 years after its inception.

But that is what is happening now to Monte Paschi bank when on July 25, regulators halted trading of the bank's public stock due to an opening 8% drop, on the fears of share price collapse.

Shares of beleaguered Italian lender, Monte dei Paschi (BMDPF) , were suspended from trading early Monday morning after falling by almost 8% after the opening bell. The plunge comes just days ahead of results from the European Banking Authority's most recent stress tests, which are widely expected to reveal a shortfall in Monte dei Paschi's capital buffer. 
The shares fell by  7.6%, to trade as low as €0.28, before being suspended. The stock has fallen by almost 77% in the year to year to date as concerns have built over whether or not the bank can survive in a world where bad loans and low interest rates are eating away at its capital base and European Union regulations make public assistance all but impossible. - The Street
The insolvency of Monte Paschi is a microcosm for all Italian banks, which threaten the global financial system far more than Greece did just two years ago.  This is because Italy's banking system is about eight times greater than its Southern European neighbor, and was catalyst enough in 2008 as part of the PIIGS to help bring about the European financial crisis.

Overall, banking is a lucrative business that can earn a modicum of steady growth by lending to individuals and businesses when interest rates are set at a normal level.  But sadly thanks to the majority of the world's central banks, the dropping of rates to zero and below leaves financial institutions like Monte Paschi to have to speculate on risky assets, and the inevitable result is like we saw with Bear Stearns and Lehman Brothers... complete insolvency when the ponzi schemes eventually collapse.