Just kidding – I think! I saw a reference to Somali Pirates and CitiGroup in the Daily Reckoning today and couldn’t resist copying the concept here. Just thought it would make a cool headline I guess.
But then I got to thinking…. What if? What if the government hadn’t spent another $302 billion – yes, this second bailout of CitiGroup (they already blew $25 billion that we gave them last month) – to bail out CitiGroup? Their stock had tanked so far that a few pirates with an oil tanker held hostage probably could’ve bought the whole company.
Why they’d want it is beyond me though. Citi has trillions in mortgages, with over $1 trillion that they’ve kept off the books. The bailout from the Feds (it’s our money!) gives Citi $20 billion cash, and guarantee’s up to $302 billion of the toxic crap they’ve been claiming as assets on their balance sheet.
We should have let them fail. Yes it would be a mess and they would take other banks down with them – so what? They deserve to fail, not be rewarded with billions in tax dollars. This is just encouraging more of the same.
And wasting our money, which we don’t have (the feds are broke!) so every dollar we’re using to bail out Citi is literally being printed out of thin air. Last month alone, the Feds “created” over $1 trillion. You think you’ve seen inflation? Unless you’ve been in Argentina or Zimbabwe, you have know idea what’s headed our way. I don’t either, but I guarantee that we’re all going to regret this in a few years.
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