Folks, these bailouts are getting surreal. Shiti and our fugly .gov just gave the taxpayers the finger (again), and has, with each new bailout is, almost overnight, transforming US into debt serfs. Really! We’re on the hook for this people, and practically none of the dweebs making these decisions is accountable to the electorate.
And all of this is being done… why exactly? So everything doesn’t collapse around the heads of Clueless Bush and Darth Cheney, that’s why. Keeping the plates spinning until they’re safely ensconced in Paraguay or Wyoming is the primary objective.
So, when the big crash comes, the black guy gets the blame.
The value of fuck all
Fed Pledges Exceed $7.4 Trillion to Ease Frozen Company Credit
Nov. 24 (Bloomberg) — The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago. [Bloomie]
Leverage works both ways, but is especially nasty on the down side You’d think everyone on Wall Street could have anticipated that, but alas, no, you’d be wrong
“Citigroup’s leverage ratio of 56 means that the bank has $56 of assets for every $1 of common equity. If the value of those assets falls 2%, then common stockholders are wiped out. Here’s why: Assets = Liabilities + Equity. If you understand this formula, you will understand the credit crisis. So read on…” [optionarmageddon]
Shitigroup saved in spite of itself
I sure hope it was worth it (hint: it’s not)
“Once the biggest bank in the world, the embattled Citigroup is worth just $20 billion today, compared to $250 billion in 2006. Not even the prospect of a $350 million cash injection from Saudi Prince Al Waleed bin Talal was enough to reverse the tumbling share price.”
“The senior sources claimed that Citi is very different from banks that have collapsed in the credit crunch because it is well capitalized.” [NYPost]
WTF? This statement was as recent as yesterday, Nov. 23. Tell me again WHY THE FUCK do they need to be bailed out if this is a true statement?
Oh yeah, my bad, IT WAS A LIE.
Suppose the Saudi Prince wished he’s waitied?
This is just too good
What Barack Obama Needs to Know About Tim Geithner, the AIG Fiasco and Citigroup
Like Barry Hussein gives a shit. He’d rather put young people to work picking up litter on highways en masse. Now, that’s productive application of labor in the gummint’s eyes! Were wondering where they were going to find 2.5 Million new jobs to create (that’s 100,000 a month, which is far less than what we’re currently hemorhaging)?
Anyone else noticed how, so far, all the recently announced appointments to the new regime are more of the same: insiders, Clintonian’s, Wall Streeters, Goldbrickers*, the guilty, the usual suspects.
Where’s the change? Shouldn’t this be reflected in the cabinet choices? It is the same old-same old, rewarding loyalty with cushy jobs and grand perks at our expense.
For anybody who expected more from this big-eared wimp, told ya!
I tell ye, it’s the Peter Principle operating in high gear. Is Barry going to be a figurehead just like his predecessor?
Did you happen notice Obamamessiah was from Chicago, land of patronage?
*Denizens of the United States of Goldman Sachs
Krugman weighs in
“this bailout is an outrage: a lousy deal for the taxpayers, no accountability for management, and just to make things perfect, quite possibly inadequate, so that Citi will be back for more.
Amazing how much damage the lame ducks can do in the time remaining.” [NYTimes]
My point exactly.
Fed Pledges Exceed $7.4 Trillion in Rescue of Companies With Frozen Credit [Bloomie]
Man, where they gonna get all that money? Oh yeah… <gulp>
Recession’s Grip Forces U.S. to Flood World Economy With Even More Dollars [Bloomie]
“It’s true that, over the long run, too much money creates inflation,” says Lyle Gramley, a former Fed governor now at the Stanford Group Co. in Washington. “But they’re trying to keep the economy from going over the precipice and into the abyss.”
Bailouts are, simply put, welfare for the wealthy. It is robbing from current and future taxpayers in order to pay down the debt run up by crazed b-boys who were jacking up the basis of their bonuses and have already moved this ill-gotten wealth off-shore.