Heads I Win, Tails You Lose ...

It's touching to listen to Henry Paulson explain why those bankers don't really want this new capital injection, but how as a civic duty they will graciously set aside their morals and agree to take our money. But Adam Levitin explains how (surprise!) the bankers have pretty well bought themselves the best of both worlds: we (taxpayers) are coming in below debt, but we don't really have the protections of equity (link). Adam calls the new scheme "subordinated debt," which is true in a way but beside the point. The real kicker is that equity can continue to get dividends. I wonder if this trumps the usual rule under which you can't pay a dividend while insolvent? Adam thinks he sees a regulatory motive here, but I suspect he's being too generous: I infer it just proves that bankers are willing to take all the money in the world as long as it doesn't destroy the comfort and convenience of the bankers' life. Well, who among us can blame them for that?

Go Read Weller

Some useful stuff going up over at Credit Slips from a bloggger you probably don't know: Christian E. Weller, of The University of Massachusetts at Boston and the Center for American Progress, doing a visitor turn, and it could hardly be more timely. For some unterrified clarity of vision, go here.

Bear With Me Here...

Light posting at the moment because I'm putting stuff together to showcase starting Jan. 2 when I guest-blog at Creditslips. I've got 15 on the shelf so far, many with a "bankruptcy and literature" bent. Watch for 'em, at Creditslips, and cross-posted here.

I'll Be Guest-Blogging

Okay, it's a done deal: I'll be guest-blogging starting January 2 over at Credit Slips, a (the?) premier blog for discussing issues of credit law, credit markets, etc. (including bankruptcy). It's a distinguished lot over there and I am honored to be in their company (you want to look smart, hang around with smart people). I'll cross-post over here, but come pay them a call--lots of interesting stuff, and lots to learn (link).