by CalculatedRisk on 2/24/2009 04:05:00 PM

The opposite of cliff diving today ...

Dow up 3.3%

S&P 500 up 3.9%

NASDAQ up 4%

Krugman writes: Mysterious plans

I’m trying to be sympathetic to the various plans, or rumors of plans, for bank aid; but I keep not being able to understand either what the plans are, or why they’re supposed to work. And I don’t think it’s me.

So the latest is that we’re going to convert preferred stock held by the government to common stock, maybe. James Kwak has a good explanation of what that’s all about. And it’s not at all clear what is accomplished thereby.
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[See Krugman's post]
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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.