Bust It Up
Citigroup is a black hole, sucking in every dollar thrown at it and it still wants more. No amount seems enough to save it. Taxpayers have already guaranteed a whopping $300 billion dollars worth of Citigroup debt. Now, two months later, Citigroup is begging for still more capital, pretending that will save it.
Tim Geithner’s Brain Is A Black Hole
Not only is Citigroup a black hole from which no taxpayer dollars can escape, but Geithner’s brain is a black hole from which no intelligent thought can escape.
How the hell can you preserve a system this way? The answer is you can’t. Nonetheless the Obama administration tries to end bank nationalization talk.
The White House on Friday insisted it’s not trying to take over two ailing financial institutions, even as stocks tumbled again. On Wall Street, talk of nationalization of Citigroup Inc., and Bank of America Corp., prompted investors to continue to balk, worried that the government would have to take control and wipe out shareholders in the process.
Spare me the sap.
Geithner is attempting to bail out his banking buddies, no more, no less, and he does not give a damn what it costs taxpayers to do so. And while everyone and their brother has hopped on the Nationalization Train (please see The Nationalization Train Has Left The Station), I think there are at a bare minimum a half dozen questions that need to be addressed first (please see Nationalization Revisited).
Citigroup is struggling to remain independent even as it knows full well, that without still more government intervention, it is worthless. In fact, Citigroup is less than worthless because without more taxpayer cash infusions it cannot survive.
To hell with Citigroup. Bust it up and sell it. It’s the best possible outcome for everyone involved.
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And please. Take AIG with you when you go.
Comment by Maria — 2/23/2009 @ 8:08 pm
Maria, just for you — the cartoon is right on cue.
Comment by BMB — 2/23/2009 @ 8:12 pm
JP Morgan cuts dividend, No GE can cut the only reason why anyone is still in GE. WOW this is getting UGLY!
Comment by Braunie — 2/23/2009 @ 8:18 pm
Gary K. said tonight on his radio show that he expects GE to cut their dividend as well, probably within the next 60 days. It seems inevitable.
Comment by BMB — 2/23/2009 @ 8:22 pm