Quote Originally Posted by Geoff Parkstone View Post
But don't go running away with the notion that the dividends are being handed out for no good reason to flash city guys in bowlers hats quaffing champagne and ordering new Ferraris.

There is a basic dividend cost for any equity capital that has escalated as interest rates rise, and most of the shareholders will be pension funds for normal working people. These funds need fuel to grow and keep pension projections slightly inflation proofed.

This does demonstrate the fragility of any pluralist economy - ie one that is dependent on funding from "little people" - which, however dressed up, lies at the core of UK economy. Routed through hedge funds, pensions ISA's, investment funds etc, it's sill your and my savings in use here.

These are the potential losers, unless we have the mindset to not invest in the UK economy at the moment. Which I have, whether rightly or wrongly we shall see.
Your right, up to a point, but what has happened with TW and indeed to a number of other previously publicly owned services such as care Homes for instance, is that the venture capitalists have taken over and the dividends are funded by loading the company with debt, these types of deals, similar ones did for BHS etc. Are basically ponzi schemes in all but name, they rely on ever increasing revenues to service the debt and instead of dividends being paid out of profits, they are paid from borrowing.

Vulture capitalism at its worst and unsustainable.