Back when $100bn bought very little Wednesday, December 24, 2008
I saw this recently on The Big Picture blog and thought it worthy of reproduction
Consider that one year ago Royal Bank of Scotland paid US$100 billion for ABN Amro. That seemingly impossible amount would now buy:
Citibank $22,5 billion (74% down)
Morgan Stanley $10,5 billion (-72%)
Goldman Sachs $21 billion (-67%)
Merrill Lynch $12,3 billion (-77%)
Deutsche Bank $13 billion (-71%)
Barclays $12,7 billion (-71%)
And still leave $8 billion change - with which you would be able to pick up General Motors, Ford, Chrysler and the Honda F1 team.
Odd thing is, it would be hard/impossible to borrow the $100bn now to buy them.
posted by John Wilson @ 2:43 PM Permanent Link
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