Friday, October 31, 2008

More bad news for Canwest

Moody's is taking a cold, hard look at the company's debt. The bond rater believes Canwest needs to sell assets to maintain the cash flow needed to cover debt.
The stock dropped 10% to 90 cents after a very slight dead cat bounce this week.

The Toronto Star gets around to following this story.

This kind of news doesn't help. The '81 recession was brutal but somewhat artificial, caused by central banks cranking up interest rates to fight inflation. This time around, no one's in control. The pattern of volatility and financial sector collapse is more like 1929-1931, but with some measure of more competent government reaction.

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