Saturday, November 22, 2008

After lobbying hard for 50 years to get the government off their backs, Citi now wants the Government to help it states that Citi is looking forward to the Government to bail it out since their share prices are falling and their top management stands to lose a TON money.
Am beyond amazed. For 50 years since 1933, Citi has fought against the Steagall Act for so long that they celebrated its demise with a bottle of the costliest champagne.
That act, which could have prevented them from sliding into their worst situation today was anathema to Citi which essentially is a free hand in markets.
Citi has always hated government interference whether it is to regulate their border-line legal doings or trying to control their rampage in new markets.
After all Citi was the one who duped the Govt. of Norway by making it invest in junk bonds and later settled the case.
Now, when the FREE market has found out the true value of Citi and is displaying it in its stock price, Citi has come running to the Government to "comfort" its top executives that their multi-million shares are truly worth their weight in Gold.
It wants the Government to give the same treatment to Citi that the government gave to FreddieMac.
Total buyout by Government, and let the congress and president worry about the economic mess Citi has made and die in it while Citi's executives fly off to their Caribbean island resorts.
The sad thing is Government will oblige them, how much ever voters protest, because they have been long bought over. So now Citi is collecting the profit on its investment in Congressmen, Senators and Presidents.
UPDATE on Nov 23rd Nov: As predicted, Citi has begun collecting on its long-term investment in congressmen by making congress and Paulson back Citi's bad loans with Government Tax Payer money to the tune of $306 Billion!
Wow! Call that the BEST investment Citi has ever made!
Goes to prove that it pays to have a congressman/senator on your payroll.

No comments: