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As you know, CIT is deeply troubled, and most likely heading towards some sort of managed bankruptcy. The company is said to be holding counter party risk with many banks including Goldman Sachs. The rally may be based on strong rumours of an imminent bailout for CIT. The word on the Street is that Geithner and Summers caved again after a few key phone calls.
Let’s see how the Obama Administration handles yet another financial institution brought low by bad risk management in pursuit of outsized profit. Wall Street and their demimonde in the government and the media hate stimulus packages designed to assist the ordinary Joe, even if all it does is ease the pain during a steep downtrend (which was caused by the financial sector). They hate it, unless there is a way to charge fees in its distribution, and turn it into a profit-making venture for them where they derive most if not all of the benefits.
Until the banks are restrained, and the financial system is reformed, and balanced is restored to the economy, there will be no sustained recovery. The Obama team is incompetent, and probably worse. Its a great disappointment. They are showing all the wrong moves on the economy.
$12 trillion is spent on bailing out Wall Street and it results in billions of dollars in earnings for these firms even though everything was done to reduce the bonanza in public view. Of course, you screw Main Street and the common man in the process. Then you dump CIT, ushering in phase two of the disaster - the death of the real economy. If you are a sociopath you do not care at all. I know these Wall Street guys, and Jeffrey Dahmer was more trustworthy.