You now own bank shares

You now own bank shares. The government invested in nine banks with your tax money. Yesterday, I wrote that you can’t predict market direction due to government intervention. Now you can’t even choose which companies you would like to invest in.

Worse, the government chose some banks over others. Many banks are suffering from misinvestment into mortgages, yet only some will receive taxpayer money. The other banks are on their own. Depositors will likely move their money to the government supported banks. Money and power will concentrate in the larger banks and it will be more difficult to get a loan or the loan’s interest rate will be higher than it would be if many more banks were competing for your business.
And all this money invested into the banks will devalue your dollars.

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