positive signs from europe, page-10

There has just been a wave of fear of a European credit squeeze, with banks now committed to adhering to the capital requirements decided at the Bank of International Settlements-"Basel 2". This will require higher capital ratios of the banks who have been getting somewhat out of control in this area. When this was applied to Japan some years back, the banks stopped lending period. They had a tight deadline to build up their capital bases to be allowed to stay in the international cheque clearing system. What followed was a property crash and economic no growth/stagnation.
The G20 has been considering the situation and while the banks are being required to build their capital ratios, there is now to be no heavy pressure in the near term, but the adjustment will have to be made. A renewed tighter lending freeze caused by ratio pressure would entrench recession, just when the ice is starting to melt a bit.
If a bit of recapitalisation is needed in this environment I would like to see shareholders being given first dibs. The quality of management at the controlling entity has not changed and they will look after their own interests first and only. Rely on that.
Lets just hope the valuations are better this time around. It depends on what catehgory the property falls into. B grade-no joy. A grade-hopeful. Unfortunately AEZ has a far bit of B grade I think. We will soon know.