Skip to comments.Citigroup to get $306 Billion Bailout
Posted on 11/24/2008 11:49:46 AM PST by 2ndDivisionVet
Main Street continues to suffer without help, while Wall Street continues to get billions of dollars of money thrown at it. Citigroup is the latest corporation in line for a bailout.
While its always said we don't have money for social security, medicare, schools, infrastructure repair, health care, we have plenty for Citigroup (and others) it seems.
According to MSNBC, late Sunday, the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp announced the bailout jointly. The U.S. government will take a $20 billion stake in the company, as well as guaranteeing as much as $306 billion of risky loans and mortgage-backed securities.
Other sources said the deal was still being finalized.
But it seems like a rescue for Citigroup is inevitable, despite opposition by many. The stock has crashed even faster than the market as a whole, and a move such as this is seen as vital to stabilizing the company and bringing confidence back to investors.
The proposal could establish a sort of "bad bank," according to the Washington Post to hold the toxic sexurities. One could also see that this could be extended to other banks, or used as a template.
Is what a joke? Kennedy’s comment? I hardly think so,
Congress? most assuredly.
Democrats = socialism
Republicans = corporate socialism
Rush said something today they he considered controversial.
He said, “No new ideas have been put forth in over 60 years, only recycled bad ideas.”
There's a reason for that.
“In September Citi took over Wachovia. They bought more than they could chew because now Citi needs bailing out. Whats wrong with this picture.”
Update - They tried to buy Wachovia, but it ended up going to Wells Fargo.
They sure like keeping everyone on the plantation; don’t they?
If Citigroup is so large that its failure means the failure of the American economy, then there's only one logical solution: break it up. It's a monopoly, holds too much power and its continued existence as-is is a threat to America's social stability.
Tip of the iceberg, Bloomberg (after sueing for access to treasury and FED information) just reported that our beloved leaders have set aside 7 trillion dollars of future taxpayer debt to bailout these con artists. They have already burned through half of it. That is half of our GDP. We are screwed.
Just think, the Chinese are building roads and nuclear power plants with the same amount of funding we just gave to Citibank. If we did that we would at least have something to fall back on when these jokers eventually bankrupt our country.
Well, the puts, longs, shorts and pulls are rather self explanatory.
It’s highly volatile too, with booms and upcycles followed rather quickly with flaccidity and downcycles.
Once one bailout was passed, it opened the proverbial flood gates. I suspect that Obama will attempt to bail out the American people with Stimulus checks composed of freshly printed money.