Chart of the Day – 5.9.2009

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.

Just for the hell of it, here’s a composite version of the two charts I posted the other day from the stress test report. Basically, for each of the 19 big banks that were tested, it shows estimates of both projected losses under adverse economic conditions as well as the ability to absorb those losses without eating into capital. For example, on the far left, American Express has big expected losses, but also has the capacity to absorb them all via earnings. So, since their capital structure is OK right now, that means it will stay OK and they don’t need to raise money.

Next door, however, is Bank of America. They have big projected losses and only a limited ability to absorb them via earnings. That means their losses will eat into their capital. What’s more, their capital structure isn’t so hot even now. That’s why Treasury is requiring them to raise a huge tranche of new money.

Anyway, as you can see, hardly anybody is in really good shape. Even the banks that have adequate capital and income to see them through the recession are still expected to take sizeable losses. And yet, bank stocks are up, up, up. Go figure. If I didn’t listen to Paul Krugman so much maybe I would have bought 10,000 shares of BAC a couple of months ago and made a killing. Thanks a lot, Paul.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate