[Money-matters] Money Matters Update Nov 24

Mon Nov 24 15:34:19 UTC 2008

Nov. 24 (Bloomberg) --  <http://www.bloomberg.com/apps/quote?ticker=C%3AUS>
Citigroup Inc., facing the threat of a breakup or sale, received $306
billion of U.S. government guarantees for troubled mortgages and toxic
assets to stabilize the bank after its stock fell 60 percent last week. 
Citigroup also will get a $20 billion cash injection from the Treasury
Department, adding to the $25 billion the company received last month under
the Troubled Asset Relief Program. In return for the cash and guarantees,
the government will get $27 billion of preferred shares paying an 8 percent
dividend. Citigroup rose 53 percent to $5.75 at 8:37 a.m. in New York
trading today. 
Under the agreement, Citigroup and regulators will back up to $306 billion
of largely residential and commercial real estate loans and certain other
assets, which will remain on the bank's balance sheet. Citigroup will
shoulder losses on the first $29 billion of that portfolio. 
Any remaining losses will be split between Citigroup and the government,   (
TAXPAYERS  THAT MEANS YOU)   with the bank absorbing 10 percent and the
government (YOU)  absorbing 90 percent. The Treasury Department will use its
bailout fund to assume up to $5 billion of losses. If necessary, the
<http://topics.nytimes.com/top/reference/timestopics/organizations/f/federal
_deposit_insurance_corp/index.html?inline=nyt-org> Federal Deposit Insurance
Corporation will bear the next $10 billion of losses. Beyond that, the
<http://topics.nytimes.com/top/reference/timestopics/organizations/f/federal
_reserve_system/index.html?inline=nyt-org> Federal Reserve will guarantee
any additional losses.
In exchange, Citigroup will issue $7 billion of preferred stock to
government regulators. In addition, the government is buying $20 billion of
preferred stock in Citigroup. The preferred shares will pay an 8 percent
dividend and will slightly erode the value of shares held by investors.
Marc's Notes:
Ta Da!  And there he is!   Another cool 1/3 of a TRILLION  out the door.
Citi gets bailout to the tune of .. Well    too much for me to count.
And the market rallies on this news. What message are we sending by buying
stocks on this news? That we approve of the bailouts?  How turned upside
down are we?
The public has lost touch with these trillions out the door and the FEDS
know it. We sit, complacent, waiting for our next crumb of a stimulus check
of 600.00 or so, while our currency, indeed our nation is thrown under the
bus by these clowns. Our forefather's freedom is trampled under what Thomas
Jefferson called the pariah of banking.
Take a look at this article:

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.

Remember when I said the cost would be closer to 5 trillion or more?  They
said 2oo billion? ( are you getting your  "illions" mixed up?)  So am I!
Outrageous.

That's all for now. I have to go throw up now. I just wanted to confirm that
CITIBANK effectively went under with this announcement just like we thought!
Oh, and one other thing..    Shhh !  don't tell anybody.. Come a little
closer....

"IT WONT BE ENOUGH!"

All the best,
marc
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