Monday, November 24, 2008

Citigroup needed a bailout?! or Inverse Capitalism

What is this world coming to that Citigroup gets $300B+ in taxpayer guarentees for being complete idiots? Oh sure you guys made a fortune creating all this toxic stuff, but now that the chicken has come to roost you can sit back ad relax because the taxpayer has your back. What BS inverse capitalism is this? The sheeple reporters will hail the government for taking an equity stake but its only $27B, and at double the current market price (so effectively $13.5B plus a $13.5B subsidy). Its a slap in the American tax payer's face and I hope they get Paulson in jail for this atrocity. Let me get this straight, the government is backing $306B in debt, and injecting $27B (not including the last $25B) in exchange for a rapidly declining $13.5B investment. I feel like a chump, being an American taxpayer and all.

The real news here is that Citibank needed a bailout this weekend. Sure, we noticed that something was not quite right last week when C plunged 60% but things must have been catastrophic for them to need another third of a trillion in government money over the weekend. Will this save the market or will it spook us into a panic? Who knows, but the trend is clear, Citi tanks:

1 comment:

movie buff said...

my initial thought upon hearing about Citibank's potential bankrupcy was, Yipee! this will cancel out the small fortune's worth of debt I have stored up on my trusty Citi-card... right?