Comments on: Citibank's "Sweet Deal" From Government

Struggling Bank Gets $20B Lifeline, $306B In Loan Guarantees; Bush: More Bailouts Possible

[sepa2]

We may be seeing the beginning of the end of America as we know it.
Posted by swin5 at 02:54 PM : Nov 24, 2008
America as we know it is already gone!!
Posted by donevis
---------------
America as we know it was built by the engineers, scientists and enterprenuars who advanced new ideas to create new technology, products and jobs. But later (I do not know when)Wall Street analysts, lawyers, MBAs ... took over and rather than a service privider took over the economy and create companies the way they know well - by manupilation of financial regulations. These companies create no new wealth but channels money from one place to another earning huge commissions. Dotcom boom is a good example that do not make anything but just ride on an idea and make few rich before going bust making many and the economy poor.

[greeneyes222]

Citigroup is foreign owned and one of the most predatory lenders out there. Yet they''re rewarded at taxpayer expense.

Shame on Bush, shame on Paulson, and shame on Obama for going along with this.

[donevis-2009]

We may be seeing the beginning of the end of America as we know it.
Posted by swin5 at 02:54 PM : Nov 24, 2008

America as we know it is already gone!!

[sleepyric]

where''s the gov bailout for my IRA?? crooked b@stard Bush. I hope too they burn in hell along with all the dimwits that voted for him.

[mikezembill]

Kevinkkloste G.W BUSH does not give a RATS A-S-S about the american people.

[mikezembill]

How do these people sleep at night knowing there may be millions of people in the usa that would like to send them to hell at any second.

[swin5]

These fools are throwing billions of dollars at these companies like it''s chicken feed. Each bailout puts each citizen of this country thousands of dollars in debt. This country is bankrupt. These bailouts will just lead to a more horrific collapse. Tell me where in the constitution the federal government has the authority to do all this. Understand this - the government is not the solution, government is the problem. We may be seeing the beginning of the end of America as we know it.

[netbs9]

I am reading "The Web of Debt" by Ellen Hodgeson Brown and it is an eyeopener. Great reading too btw. We need to cut off the Fed (tell them to tiake a hike) and go print our own money. We can effectilvely cancel our entire debt and have money to spare. ALl central banks world wide are frauds. They have no money or assets. When they make a loan it is money created from thin air when it first appears on the loan papers. We are paying interest to a private bank (Fed) who started business with not one cent but earns all the interest everywhere. Time for all countries to dissolve their central banks and issue thier own paper money. Let Bush and his cabal rot!




Posted by jntlw at 02:21 PM : Nov 24, 2008

Research JFK and the FED eye opener many theories on who had JFK killed but the FED the most powerful entity in the world probably had the most to do with his demise

JFK wanted to return the US to the Gold Standard it''s true look it up

[jntlw-2009]

I am reading "The Web of Debt" by Ellen Hodgeson Brown and it is an eyeopener. Great reading too btw. We need to cut off the Fed (tell them to tiake a hike) and go print our own money. We can effectilvely cancel our entire debt and have money to spare. ALl central banks world wide are frauds. They have no money or assets. When they make a loan it is money created from thin air when it first appears on the loan papers. We are paying interest to a private bank (Fed) who started business with not one cent but earns all the interest everywhere. Time for all countries to dissolve their central banks and issue thier own paper money. Let Bush and his cabal rot!

[netbs9]

Last week, Citigroup Chief Executive Vikram Pandit announced 50,000 additional job cuts on top of 22,000 cuts previously announced.


Bush/Paulson snicker and say nice Job Citi Group CEO now here''s another $20 billion on top of the $25 billion of US taxpayer money and BTW, the government plan also guarantees up to $306 billion in risky loans.

Can''t wait for Xmas

Best Regards,

George and Henry

[netbs9]

The government will continue to have to do this until it addresses the root problem of failing mortgages. Nothing that has been done thus far will keep home owners from defaulting on their loan payments.


Posted by redbds at 02:00 PM : Nov 24, 2008


Aw the GOP scapegoat tactics are a thing of the past blaming the homeowners and labor for the current US economic crisis doesn%u2019t add up, now with the Internet millions are able to research and find the information that explains these types of economic problems in detail. The GOP propaganda techniques are becoming a dinosaur with the advent of the Internet, think tanks like the Heritage Foundation for example can only promote falsehoods that last a day or two like the one about UAW employees Avg wage of $73 per hour lie. After some quick research a person will find out the avg UAW worker makes around $28 per hour $60,000 per year hardly over paid by any stretch.

Now go find somewhere else to play redbds, you%u2019ve been found out punk.

[lemonskink]

And they move jobs to the Philippines. Part of the deal would be to keep jobs in the USA, you''d think. Screw them all, let them go down in flames along with Bush.

[redbds]

The government will continue to have to do this until it addresses the root problem of failing mortgages. Nothing that has been done thus far will keep home owners from defaulting on their loan payments.

[bobnjersey]

[The Hagel bill, on the other hand, was a SPECIFIC GOP initiative to reign in Fannie Mae and Freddie Mac, but IT WAS REJECTED UNANIMOUSLY BY ALL DEMOCRATS ON THE FINANCE COMMITTEE, including Barney Frank, the king of the subprime mortgages. The measure was never brought to a vote because the Democrat Chris Dodd refused to let the bill out of committee.]
[Posted by txgrouch2007 at 12:53 PM : Nov 24, 2008]

please show how this legislation would have prevented the collapse of the mortgage market, the credit market, and the broader financial markets.

please outline how this bill would have curtailed the use of credit default swaps.

please outline how this bill would have forced the sellers of credit default swaps to back their guarantees w/ capital.

please outline how this bill would have made any difference in the leverage ratios that many investment banks were operating under at the time of their demise.

please outline why the bill never came up for a vote ... even though it was sent to the republican led senate in july 2005?

please ouline what role the republican lobbying firm ''dci'' had in trying to kill this legislation.

what''s that? you can''t ... you won''t ... say it aint so!

[incog-nito]

In other news, the government has just announced that it intends to bail out, quote, "everything". "We stand ready to bail out any corporation that asks for it," one official said on condition of anonymity. "We are confident that the American taxpayer and their descendants will not mind working extra hours for less income in order to make this happen," he added.

[duffyn]

IMHO - this just shows the bush political DNA and why so many ordinary folks are in trouble. Given a choice, the bush admin will always cut a better deal for big time banks, exec''s, oil companies, super rich. Hi admin and the repugnant congress have now been doing this for 8 years and, is it any surprise that a lot of regular folks are hurting now???? Obama will start moving in the opposite direction, but it took 8 years to create this mess so, be patient folks....

[itdfactsu]

Citibank Eight Months Later
Companies / Banking Stocks
Nov 24, 2008 - 12:57 AM

By: James_Turk

I last wrote about Citibank eight months ago in an article entitled %u201CWill Citibank Survive?%u201D That article is still posted on MarketOracle.co.uk and can be read at the following link: http://www.marketoracle.co.uk/Article408
8.html

From that preeminent position, Citi has devolved to become the poster child of bad banking practices. These are marked by the reckless financial engineering foolishness and irresponsible credit excesses that have turned staid and conservative banks into the out of control casinos they have become.

Banks or to be precise here, the bankers who run them in recent decades have focused on quarterly results and management bonuses. Gone is the caution that should be prudently and routinely exercised in their role as guardians of the depositories of other people''''s money.

I suppose though this outcome was inevitable. When the government proclaims that you are %u201Ctoo big to fail%u201D, that implied backstop will unsurprisingly encourage management to throw caution to the wind, and so they have. But we are now seeing the results of this misguided policy and the bad banking practices that result from it. This reach to generate outsize returns for shareholders comes with enormous risk.

http://www.marketoracle.co.uk/Articl
e7464.html

[itdfactsu]

Citibank Eight Months Later
Companies / Banking Stocks
Nov 24, 2008 - 12:57 AM

By: James_Turk

I last wrote about Citibank eight months ago in an article entitled %u201CWill Citibank Survive?%u201D That article is still posted on MarketOracle.co.uk and can be read at the following link: http://www.marketoracle.co.uk/Article4088.html

From that preeminent position, Citi has devolved to become the poster child of bad banking practices. These are marked by the reckless financial engineering foolishness and irresponsible credit excesses that have turned staid and conservative banks into the out of control casinos they have become.

Banks %u2013 or to be precise here, the bankers who run them %u2013 in recent decades have focused on quarterly results and management bonuses. Gone is the caution that should be prudently and routinely exercised in their role as guardians of the depositories of other people''s money.

I suppose though this outcome was inevitable. When the government proclaims that you are %u201Ctoo big to fail%u201D, that implied backstop will unsurprisingly encourage management to throw caution to the wind, and so they have. But we are now seeing the results of this misguided policy and the bad banking practices that result from it. This reach to generate outsize returns for shareholders comes with enormous risk.

http://www.marketoracle.co.uk/Article7464.html

[airboatboy1]

"If Citigroup had not been bailed out, then the whole financial system could collapse," said Princeton economics professor Paul Krugman on CBS'' The Early Show.


Sounds familiar, doesn''t it?

[itdfactsu]

Last week, Citigroup Chief Executive Vikram Pandit announced 50,000 additional job cuts on top of 22,000 cuts previously announced.



Citibank''s "Sweet Deal" From Government
Struggling Bank Gets $20B Lifeline, $306B In Loan Guarantees; Bush: More Bailouts Possible


In addition to an investment of $20 billion in Citigroup, the government plan also guarantees up to $306 billion in risky loans. This is on top of the $25 billion the government has already pumped into Citigroup.

President George W. Bush, standing alongside Treasury Secretary Henry Paulson, speaks to the media regarding the Citigroup rescue package outside the Treasury Dept., Nov. 24, 2008



It looks like a very sweet deal for Citigroup management, very sweet deal for Citigroup shareholders, to the extent they have anything left %u2014 not very good for the taxpayer. This was not good.

Economist Paul Krugman