Citigroup bailout being hatched?
Click here for update: Citibail!
Where are our fiscal conservative watchdogs in Washington? Bloomberg reports that analysts are confident a rumored Citigroup bailout is being hatched. You’ll remember that the AIG bailout negotiations took place out of sight, in the dark of night, on past weekends. Looks like we may have another one cooking.
This is our money — despite what bailout stooge GOP Rep. Joe Knollenberg and his grubby-handed colleagues on both sides of the aisle may think — and we deserve input. GOP leaders, where are you? Wake up and smell the money grab. Get to work. Chop-chop:
Citigroup Inc. will probably get rescued by the U.S. government after a crisis in confidence erased half its stock-market value in three days, investors and analysts said.
Citigroup has more than $2 trillion of assets, dwarfing companies such as American International Group Inc. that got U.S. support this year. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke may favor a rescue to avoid the chaotic aftermath of Lehman Brothers Holdings Inc.’s bankruptcy in September.
“There is no question that Citi is in the category of ‘too big to fail,’” said Michael Holland, chairman and founder of Holland & Co. in New York, which oversees $4 billion. “There is a commitment from this administration and the next to do what it takes to save Citi.”
…Including a $25 billion capital injection from the U.S. Treasury under the $700 billion Troubled Asset Relief Program, the company has at least $50 billion of capital above the amount required by regulators to qualify as “well capitalized.” Capital is the cushion banks must keep to absorb losses and protect depositors.
Deutsche Bank AG analyst Mike Mayo wrote in a report today that the bank’s $25 billion of reserves, when combined with other resources, “should be enough to cover estimated cumulative losses of $50 billion on loans.’” Mayo rates the stock “hold” and has a $9 price target.
“With Citi being as big as they are, the government will make a special case and step in and find another reason to dispose of more TARP funds,” said Matt McCormick, a portfolio manager and banking analyst at Bahl & Gaynor Investment Counsel in Cincinnati, which manages about $2.9 billion and doesn’t own Citigroup stock or debt.
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The Air Force (not sure if any other DoD entities are on board) just awarded their Government Travel Card (GTC) Program to CITI, which will be activated on 30 Nov 08 it appears the Federal Government will want to cover their butts in taking the contract away from US Bank so they don’t lose their new service provider. By the way the transition is a freaking nightmare with a large population of our Wing deployed receiving new credit cards at their deployed locations (some have yet to receive them).
It is also causing huge problems with the Defense Travel System in making accrual payments toward charges made on the old card to get to their current deployed location not to mention other issues with trying to get the orders to cross fiscal years. The GTC is mandatory for those that travel on official USAF orders to pay all costs. If the traveler uses their own credit card they risk not being reimbursed.
This part of crap sandwich 2.0 is one of those damned if you do and damned if you don’t moments. God please deliver us from anymore government help in this government made mess!
ΜΟΛΩΝ ΛΑΒE (mo-lone lah-veh) Translation: “Come and Take Them!”
The Monopoly analogy has so many connections to today’s ills I don’t know where to begin.
What’s the Guiness world record for the longest/biggest Crap Sandwich?
I fear it’s be shattered, Guiness hates those re-printing costs….
Oh wait….They can get a Bailout!
I can’t eat anymore! (pushes away from table) No more crap sandwich please! I got to save room for Thanksgiving Day turkey.
If you want to read about the type of behavior that got us into this mess, read this piece by Michael Lewis.
Be prepared to have your blood boil. This is the kind of stuff we are bailing out.
We are being smothered by a TARP.
I never liked Citigroup, and hope this crashes and burns just like the rest of the Congressional Democrat plans!
If we all got together and demanded personal bailouts the politicians might here us. It work on the immigration bill.
Swarm
Swarm
SWARM FOR MY BAILOUT.
I know that’s stupid, but I see no difference in what the government is doing.
No company is too big to fail; This continued intervention has to stop; Those in congress that voted yes for the original bailout have already cursed us and any remaining generations with an untenable budgetary situation in regards to Social Security and Medicare, and now they choose to double down on this fiscal idiocy.
Will this ever end?
I have a feeling that Barney Frank’s picture will soon be hanging in bank and car dealership…
I should have typed “…will soon be hanging in every bank and car dealership.
Rather see it posted in all the Post Offices.
Yeah, and it makes me mad as hell. What happened to “transparency?” I guess I really don’t know what the word means. I’d look it up in the dictionary, but I’m afraid there’d be a picture of Hank Paulson sporting a red circle with a slash over it.
Our local talk-radio guy recently interviewed Gerald Celente, director of Trends Research. Doc Thompson, who sometimes subs for Glenn Beck, said this was “the interview of a lifetime.”
You can check out Celente’s predictions at:
http://www.trendsresearch.com/
While I got stuck in an appointment and missed the meat of the interview, I could tell from the calls that came in right after that it was indeed sobering.
The host read a couple quotes:
“This December, 2009, you’re thinking about what to give for Christmas.
“In December 2012, you’ll be on the street looking for food.”
He also predicted tent cities and water shortages as well. Blade Runnerville. Check out the link. His site backs up his accuracy with old clips of news shows where he predicted what’s happening now.
I wonder what our great-great-great grandchildren will be saying
in 120 years as they write a payment check on April 15th for the Big Bailout of 2009?
I had a conversation with a co-worker yesterday. This person legally emigrated to the U.S. from Belarus and grew up in the old communist regime.
I joked with him that since the government is bailing out these big companies, why not just add a few zeroes to the end of everyone’s bank account. It’s free money, right? He laughed and said that my suggestion would cause the price of everything to skyrocket.
I replied that the government should prevent this by passing a law to keep prices on all goods and services to current levels. (again, remember that I’m not seriously proposing this)
He said that if the government did that, then the shelves would quickly be emptied at every store. People would just scramble to buy everything they could before their neighbor gets it.
Going with this, I said — okay, then the government would pass a law that would stop this hoarding from happening.
He said, that’s just what the USSR had done. Everyone got coupons from the government to redeem for their needs. You could only legally obtain an item by trading in these coupons.
That’s where we’re headed folks. The government is pumping in massive amounts of “free” money into the system. Left unchecked, we’ll eventually lose our ability to gain what we want by hard work. It won’t matter if we work harder. The government will only award what they think that we need to live, which of course, won’t be nearly enough (think Social Security).
Of course, if the worst happens, there’ll be a thriving black market of trade and barter. The government system will turn us into “criminals” in order to support ourselves and our families. They’ll have to crack down on this somehow. Probably through a secret police force to spy us out. No one is going to trade with a uniformed officer around. They will probably even offer rewards for whistle-blowers. Then it’s off to the gulag, comrade!
AlohaGuyGroup is also too big to fail. Send the money now. I have just fired 53,000 employees (what were they doing that we now don’t need?) and if I don’t get the money now western civilization will collapse. (Ok technically it already has, but facts, schackts). I’m down to 2 Gulfstream jets that will only be used by very senior management and their bimbos on company business (on their knees in DC) and trips to Davos for skiing - I mean economic conferences, heh-heh.
Michelle, if your listening check tips at write mm e mail. Just sent a link to what Citi paid for naming writes for the new Mets stadium in N.Y.
Unreal. and they want a bailout?
Talk about nerve.
Rights*
They’ll be cursing us, wondering why we didn’t do anything to stop them.
…in a lingua franca that seems like a remarkable combination of Spanish and Chinese…
Citigroup, AIG, Big 3, et al are “too big to fail”?
Does that not, in some perverted way, intimate that I, and my itsy-bitsy bank accounts, are too small to succeed?
Is anybody really surprised at this?
let me get this straight, these beggars are to big to fail, but the greatest country in history will fail? of course…crooks all.
Most voters treat the elections like their voting in a celebrity contest, not the future of their families and America.
As Walter says: “dumb a$$e$”
Beware folks, it’s going to get ugly and real soon.
Crap sandwich, indeed…fresh fecal material on a bed of arugula, seasoned with false promises and served on a bailout bun…it doesn’t go down any better no matter what you call it.
Get in line now to be fleeced early. And often. Hello socialism, it was nice knowin’ ya capitalism, but you just didn’t take care of me like the new guy promises he will, and I won’t have to give up anything to get all the benefits, except my freedom, of course…
Absolutely fabricated
very true…what could they use to control the buying and selling..hmmm…could it be a mark on your hand or forehead???
naw couldn’t be…
right4life, you are so right on the mark, unfortunately many people refuse to believe it could happen. The stage is being set and most people are ignoring the signs. They will be in for a rude awakening.
Do we get to put our names on the Shiny New Mets stadium if the crapweasels bail out Citi??????
I have dib’s on behing home plate.
$400 million dollars for naming rights.
Like to see the entire list of Ad dollars these morons whizzed away and now are caling boo hoo poor us.
*behind
sheesh
I fail to see the logic in allowing failure to continue. If poorly run companies are saved from failure they are not replaced by better, healthier companies. The companies that emerged from the Depression were the leaders for the next 40 years and beyond.
We will never see these companies that keep our economy vibrant emerge with these diseased entities like Citi and AIG choking off their growth.
Socialists with no knowledge of history are NOT the people we want calling the shots.
Just spreading the wealth!
I would strongly recommend to anyone who wishes to argue against the idea of “legal plunder” to read “The Law” by Frederic Bastiat - 1850.
Here are a few quotes:
I think I now know what a “community organizer” does: he organizes injustice…
I was listening to Messiah-Elect BroBama this morning–not to worry-by the end of January all problems will be solved with green collar jobs.
All face Chicago and salute Dear Leader the Ayatollah BroBama and kiss your rights as free people good bye.
Or not.
—
Is NOW the time for the Second American Revolution?
Once again; torch, pitchfork. ArizonaNeanderthal, it just may be.
One of my most blood-chilling moments so far — a talk radio caller said that her company, AFLAC, was put on written notice — via the government – that they were not to solicit any business from AIG clients.
Let the goose stepping begin.
A F L A C
Avoids
Failing
Lame
A$$
Companies
“…rescued by the US government…”
My fellow US citizens-WE ARE the US GOVERNMENT!!!
I think we have been made to forget that little tid- bit of information…
It’s time to tell our elected SERVANTS that the money is OURS and so is the government!
C-CS
Uh-oh - Looks like eTrade got themselves a shiny new tin cup to take to Washington.
http://www.reuters.com/article/ousiv/idUSTRE4AK6NM20081121
It sounds like their survival depends on getting $800 million from the TARP due to their crappy bets on mortgages.
Only $800 million? Such a deal!
Unfortunately my friend,logic as well as common sense are the two things that have failed to continue in DC.They have been replaced by utter madness.Watching these events unfold is like being in a bizarre episode of the Twilight Zone.I keep expecting Rod Serling to walk onscreen to deliver his monologue..
Gee, is it my imagination or is Congress just doing whatever it wants to nowadays and flipping us (American citizens who pay their salary) the bird? I know this is probably nothing really new but they don’t even try to hide it anymore. Vicious, treacherous, drunk with power, Pelosi and her cronies have truly gone mad. God help us all.
Who is doing the shorting?
I believe our Founders had a name for this:
Taxation without representation.
Life is very simple:
stop giving banks YOUR money.
Go credit union!!!
reduce your tax footprint
donde esta en salada ceasar salada en tiajuana
lmaoo amyone watching CBS show?
what a hoot!!
ops anyone and I shoulda said OT I guess
but this is the dead thread of the dead blog: no harm no foul
and darn funny for you west coasters who havent gotten it yet.
Is there any debate THE game today is
J-E-T-S JETS JETS JETS kicking the them tthings of Tenneseeyaperfectrecords?
The irony here is that Paulson and the feds were trying to give away Wachovia to these clowns as a gift, only outrge and common sense prevented it.
Has anyone heard from sonofdy? Just wondering how his wife is doing.
Boy…am I glad that the phony conservative Mr. Bush will be out by Jan 20. Obama may be no better in terms of fiscal conservatism but ateleast he will not screw up republican name.
The answer is: small well-managed local banks.
#41 - Congress, backed by the handout peddlers and appplauded by the rest of the world, just helps themselves to more of our money everyday.
According to some news accounts, Citigroup recently paid former President Clinton $450,000.00 for giving one speech. I don’t know if this is true or not but it should be investigated. If it is true and Citigroup was paying Clinton this kind of scratch while it was busy layingoff secretaries and janitors (who actually do legitimate work unlike Mr. Clinton’s speech, which does not help the shareholders or customers at all), then this should be one more reason for opposing a Citigroup bailout. Say what you want about the NY Times. Today the MY Times does a masterful job in exposing all the wild and risky trading that led to Citigroup’s troubles. In addition, Citigroup doled out hundreds of millions in foolish loans to resorts who anyone with a 5th grade education would know could not pay back the loans.
The problem is they hire ivy league grads - so beloved by Brooks, Chap and NYK - rather than people with street smarts.
ding, ding, ding, ding
The problem is, we can’t DO anything to stop them ever since withholding taxes became mandatory. We lost our ability to say “no.”
Boomer, I feel your pain. (USMC) I had a military charge card years back and ran into all kinds of trouble. I refused to use it, starting using my own and had ZERO problems. Now they are trying to force another one on me (”it is different this time…”) but I still refuse to put my credit at risk of their incompetence. Luckily for me I am retiring this next year so they can not really hold anything over my head. I feel for those who have years to go. It always burned my ass that they made us front the money for a trip we were forced to take and wait around for reimbursement. I tell them, you want me to travel, you pay.
Sadly I’m afraid this is no longer true. Not when our wishes are ignored and we are FORCED to finance things we are in opposition to and actually work to our detriment. No longer true.
And finally, how telling is it the the same people who profess to hate capitalism are calling out for bailouts of large capitalistic companies? It is not hard to see the true agenda. The inclination to let capitalism to “fail” is off-set by the agenda to prop up the unions, which are the cause of the failure. Look through the forest and you will see the trees.
Sorry so long, I got a late start today.
Are there any tax attorneys out there who can tell me how to, legally, keep my money in my own account until filing a return? There should be a way to stage a “slow down” of money into the governmental coffers to show we are fed up.
Speak,
am not sure what you mean by keeping it until you file a return?
If you owe taxes they must be paid the goal is to reduce the tax footprint.
P.S
J-E-T-S JETS JETS JETS KICKED um WON
woo hoooooo
The GOP will do nothing. Conservatives are without a voice.
The time to abandon the GOP as a source of hope is NOW.
Nothing will EVER change until Conservatives unite and fight together against the GOP and the DEMS.
This nation is almost irrecoverable.
Bansharia,
Well since I have taxes taken out every month and get a refund when I file, I suspect the government earns a good deal of interest on MY money until they refund a portion to me after I file. If I can put a dent in their cash flow by having zero taxes deducted even though I will still owe in the end, it might send a message. Well, that is if enough people do likewise.
Speak,
okay well you didnt linger about for an answer, fair enuff tis a dead blog.
should you poke back:
CONfiscatory taxation is a very simple concept what cannot be seen cannot be taxed…. reduce your footprint as any
red blooded American should. What We the People earn is ours it is NOT revenue for dims/rinos. As far as that “give back” crap well it wasnt borrowed what I chooooose to give is a gift there aint no back about it.
WOWA! SpeakEasy has another great idea that won’t do anything to break the tyranny of Washington. Keep it up!
ah Speak you are here
in that context it requires a very small amount of time. one simply estimates tax liability based on what one earns and fill out deduction form accordingly. never ever deduct more than owe but cut it close to the bone and minimize your “return”.
Bruce,
that sounded very rude am I falling for a troll?
hm clarification not falling for but should I not bother to respond to?
too complicated am going to enjoy the Jets win, ta.
Enjoy this day He has created.
Bruce, bite me. (I can get personal too)
Your doom and gloom about abandoning the Republican party makes you sound like a liberal plant (both figuratively and mentally). If you really are a conservative and want to win, breaking up the party is the wrong tactic. Remember Ralph Nader’s effect on the Dems? The conservatives, true conservatives, have four years to regroup, define the platform, communicate with other like-minded Americans and work to regain power. Eeyores need not apply. The tax talk was frustration over being powerless to stop the current climate to give away my money without my consent or approval. If you have a better idea, I’m all ears. Personal attacks are counter-productive unless you have so little self-esteem that insulting others makes your day. Good luck with that.
Bansharia, Sorry was away for a bit. I understand your concept. I was trying for something a bit more direct but I fear that was removed from us a good deal ago. Frustrated! Thanks anyway.
A shame the Titans lost. It is always fun to watch a run on the perfect season. I am old enough to have witnessed Miami’s perfect season and was a fan to boot being from Florida. I had to embrace the local team, Tampa Bay Bucs, when we got one. And spent a lot of years of frustration too. We might even squeak into the playoffs. I’m a Bucs fan- perpetual optimism is required.
Again with the “too big to fail” business. If this is the case, then we need to make sure that businesses aren’t allowed to get that big. I’d rather see Citi, AIG, or GM go under than have one penny of my tax dollars go to pay people that make more than I do yet can’t run a business.
And what is it that is going to unite conservatives in your new Bruce Party? If you don’t have the support of a majority of Republicans, you will accomplish nothing except to fracture the conservative vote and make it easier for Democrats to win.
If you do have majority support, then why not take back the Republican Party, replace the RINO leadership, and remake it as a conservative party? Why would you want to throw away the party of Lincoln and Reagan, with its storied history, to start a brand new party from scratch? Reform is much easier. Don’t sell your birthright for a bowl of porridge. Let’s unite to take back the party that is rightfully ours.
Speakeasy….my plan is to change my w-4 with my employer to married and oh lets say 10. That way nothing is taken from my paycheck and I keep it in my checking account that pays me 5% interest.