Wednesday, February 25, 2009

Deckchairs Overboard

Nice piece by Paul Krugman here, questioning how useful the US Govt’s shuffling of equity between preferred and common stock is likely to be.  This graphic illustrates how simple the problem is for a number of the US banks:

image

A neat summation too: “I just don’t get it. And my sinking feeling that the administration plan is to rearrange the deck chairs and hope the iceberg melts just keeps getting stronger.”

No comments:

Search the Weatherman