U.S. Government Agrees to Citigroup Bailout

U.S. Government Agrees to Citigroup Bailout

www.foxnews.com

WASHINGTON — The federal government agreed Sunday to take unprecedented steps to stabilize Citigroup Inc. by moving to guarantee close to $300 billion in troubled assets weighing on the bank's books, according to people familiar with details of the plan.

Treasury has agreed to inject an additional $20 billion in capital into Citigroup under terms of the deal hashed out between the bank, the Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corp. Treasury officials will charge a higher interest rate for the capital injection — 8% for the first few years — than it has charged to dozens of other banks now borrowing money under the government's the $700 billion rescue package approved by Congress last month.

(visit the link for the full news article)

I'm beggining to think that all this bailouts are a scam. I'm beggining to think that the U.S. governement is acquiring or backing all this assets to later repeal the "mark to market rule" that would result in an immediate bonanza of capital for the government.

And I say this because I dont know what else are they thinking with all these moves. People where saying that Obama was going to bring socialism, I think that socialism has shown itself way before Obama has taken office.

Edit to add: Also the fact that Saudi Prince Alwaleed Bin Talal just raise his stake on the company I think had a lot to do with this development, Bush again having the back of his Saudis friends.

www.foxnews.com
(visit the link for the full news article)

[edit on 23-11-2008 by Bunch]

The funny thing is, at the same time as this record credit creation and raw money-printing going on at full tilt, we also have unprecidented destruction of wealth across the board in every market and investment class. The fact of the matter is, an order of magnitude or more worth of wealth is being destroyed than is being pumped into these worthless companies.

So the trick would be to somehow position yourself near the nozzle of credit creation and rake in as much as you can, then kick back in glory as deflation sets in and your newly minted paper fortune skyrockets in value. There must be a select crew in that position and they are the ones laughing all the way to the (private) bank.

The question becomes: how to get in on the party?

reply to post by silent thunder


I was thinking the same thing, since all this is just as scam, you just have to figure a way in to the party and you will be set for life.

Maybe I will try to open my own bank tomorrow or something. Secure government capital, give a bunch of loans to people that should not qualify, get the government to bail me out, and I become a millionare.


[edit on 23-11-2008 by Bunch]

Originally posted by Bunch
reply to post by silent thunder

 

I was thinking the same thing, since all this is just as scam, you just have to figure a way in to the party and you will be set for life.

Maybe I will try to open my own bank tomorrow or something. Secure government capital, give a bunch of loans to people that should not qualify, get the government to bail me out, and I become a millionare.


[edit on 23-11-2008 by Bunch]

According to federal law you need at least 7 people to be on the board of any chartered bank.

So we've got you and me so far. We need five more.

Or maybe we could buy a "shell corp" bank from some sketchy nation like Zambia or Tuvalu or something. Are such things even possible? Not sure.

While I'm against bailing out bad business decisions on principle, but banks are ok to bailout but the auto industry isn't. Heaven forbid we actually try to help blue collar workers, much better to let the private bankers continue to fleece us. What's the point of having "viable banks" if there's no one with money to deposit?

This whole bailout scam is getting beyond ridiculous and history will record this as the big bailout scam of 08. Bush's people haven't done anything to help the people and have only made their banker buddies richer. As far as Obama's pick for Treas sec goes, it's bad enough giving the fox the keys to the henhouse, let's ask the foxes to build us one and we'll trust they'll look out for the hens.

No matter what side of the specturm you're on, we're all screwed. This whole bailout scam is not going to solve anything. I guess I know what people on a roller coaster feel when they see the track isn't finished and it just goes over a cliff. You hang on, but know you're doomed anyway.

The American Taxpayer gets shafted again! Makes me want to miss 3 of my mortgage payments so I can get a freebie from the government. If I make my payments on time, what good is it doing?

What can we do about it? Our government is not for the people anymore. How many more "Randy Weaver"s is it going to take before they get the message that the people have had enough!?

Ruby Ridge--Wikipedia

I can see his viewpoint clearly now. Now THAT is scary!

Dark times ahead when people start looking for an outlet to get their voices heard again......

Edit, Link Fixed, thanks for pointing that out bandaidctrl.

[edit on 24-11-2008 by CreeWolf]

Yeah this is a scam, some people I know made 50X what they invested 6 months ago on some inside info... they are now millionaires.

Some people are going to get filthy rich... and millions more will be become dirtless poor.

And you're right, when everything's going to the crapper, which will be in the next 10 years, starting in the next year and half or two, we're gonna see a lot of people resisting the paying of taxes or the IRS because they are tired of this crook business or because they simply doesn't have the money.

We're gonna see a lot of Ruby Ridge and Waco events. So much that the medias won't be able to report all of them.

[edit on 24-11-2008 by Vitchilo]

reply to post by CreeWolf


I don't know if it's jst me love, or if your link is broken

either way here's a working one for anyone else having a problem viewing it

Ruby Ridge

hope that helps!

Another bank eh?
George Said it best himself.
he said something along the lines that the government wasnt buying the banks, they were merely investing in them short term to stop the rot.

I call BS.

this is clearly becoming a country where the United States government owns the banks.

your mortgage/house
your loan/car
your income/taxes

what the government feels is best, the government now does.

Bailout the bankers, but dont bailout the auto industry. Good deal, now we know for sure who's side they are on, and its not that of the WORKER.

I feel the need to ponder how much money the "board members" of the federal reserve are going to profit from this meltdown just on the loans given to the financial institutes. Everyone know that the Federal Reserve is a private entity not a government one right? You guys should dig for info about the money changing hands with the "Fed". You will be awe stricken with the profit the board members are making. If you can research the board members. I bet none of them are going broke.

I'm playing the same card I played over the government repeatedly bailing out AIG, it's the derivatives & default swaps which have been concealed from us that is driving this. I honestly believe that there are a handfull, maybe a dozen, banks & insurance groups which Bernanke & Paulson identified to Congress as being so deeply entwined in the CDS based on them failing that the result of a colapse by any of them would actually implode the entire economy.

I am unaware of any real list that shows exactly what companies the brunt of this so-called "quadrillion dollar" CDS market is tied to. If anyone has seen such a list, I'd love to get a link to it. I may be way off on my bets here, but I'm betting that the payout over any of the auto industry's colapse absolutely pales in comparison to the payout if AIG, Citi, Wells Fargo, Chase, etc colapsed.

The real scam here is why the government continues to ignore the CDS market and why they have not stepped in and ruled that non-physical or non-tangible stock trades are illegal to free our economy from this sword of Damocles dangling over our heads.

The real scam here is why the government continues to ignore the CDS market and why they have not stepped in and ruled that non-physical or non-tangible stock trades are illegal to free our economy from this sword of Damocles dangling over our heads.

Because they are making billions in it everyday? Because doing would results in massive lost of $$ to crooks and money laundering operations?

Originally posted by burdman30ott6
I am unaware of any real list that shows exactly what companies the brunt of this so-called "quadrillion dollar" CDS market is tied to.

The "Fitch's synthetic index list". I'd like to see a copy, too. Here's some companies that show up widely on CDOs (bundles of CDSs):

CIT Group
Radian Group
Macy's
MBIA Insurance Corp.
AIG
International Lease Finance Corp.
PMI Group
MGIC Investment Corp.
Ambac Assurance Corp.
Financial Security Assurance Inc.

An interesting article:
www.forbes.com...

A scary article:
www.businessspectator.com.au...

Jim Kramer is on the Today Show talking about the saving of Citibank. He used, he actually used the catch phrase, "it's too big to fail".

Let the damn thing die. artificially propping up of these companies only will make the economic problems last longer. It's like taking aspirin to fight cancer. You are only covering the symptoms, not addressing the underlying problem for pain.

I have some serious doubts about the collective intelligence of Washington and the decision making process used in these matters. I feel this is purely a political move as other large banks have failed. This type of thinking makes for very poor decisions as it takes logic out of the equation.

The bank bailouts are intended to keep the banks operating long enough to evict us from our homes. Then homeless people will crowd the streets and all the houses will be empty.

One must ask oneself, "Why?"

Why do they want all the homes empty and the people homeless? Is someone setting up an invasion? ... Just being paranoid ...

I mean, if you really wanted to rescue the system, why not help the actual homeowners so they can pay their bills? Why not pay off everyone's mortgage and start us all out fresh, with our homes free and clear? That would save the banks AND the people.

Of course, I don't advocate any of this. I'm just saying: the fact that the gov't is bailing out the RICH, especially the bankers, is quite telling. What's next? A bailout of the lawyers? Whose money do they think they are spending? Oh, that's right, "It's not your money!"

And who owns the banks? Just who is actually receiving the actual cash? These bailouts represent (intentional) arterial bleeding, and it's a gusher. Follow the money.

[edit on 24-11-2008 by OuttaHere]

OH Great now here is a DEAL!

Let's see take the Tax payers money and give it to the banks so they can lend it back to us with interest?



This so pathetic it's almost laughable. OMG!

I guess the Bush administration can not leave our friends the Saudis specially Prince Alwaleed bin Talal bin Abdul Aziz al Saud without their rewards from his administration.

Citi was already bailed out back last year by the Saudis infuse of liquidity when they bought part of it.

Citi is more foreign that America if by now is already completely in the hands of foregn governments, inlcuding majority Saudi and second Asia.

Originally posted by OuttaHere
The bank bailouts are intended to keep the banks operating long enough to evict us from our homes. Then homeless people will crowd the streets and all the houses will be empty.

One must ask oneself, "Why?"

You are giving "them" too much credit. They are not in control here. What you are witnessing here is loss of control, not manipulation.

The banksters got greedy. They have also relied on debt and other shady practices, delivering increasing power to the Far East, Russia, OPEC, and various criminal cartels. Now the banksters world is spiraling out of contol.

Strap in it will be quite a ride. We are all about to discover how much worse chaos can be than conspiracy.