Elsewhere, I talk about kitchen sinking.
New management can instead claim that this and that and t’other are all problems that need to have provisions in the accounts. And to make those provisions, write-downs, as vast as can possibly be sustained by the finances of the company. For by starting for this new low base, their own reigns in office are going to look much better.
Further, by over-provisioning, there’s a little wiggle room to write back some of those excessive provisions in the future, thereby flattering the performance of this new management.
I’m thinking that less than $5 billion will be thought of as not enough for Boeing. And more than $15 billion will definitely be kitchen sinking.
Others think what?