Citi's failure is not an option

Taxpayers may be wondering why they're forking over more money to rescue yet another behemoth, Citigroup , even as their own nest eggs crack and jobs evaporate.

[comment]

Without a financial intermediaries such as large banks, insurance, and mortgage companies, you do not have a system for access to capital, hence you cannot have capital formation or a growing economic base.

It is important to save the system or you will not have capitalism, or at least capitalism dominated by US led financial firms in global banking or global investment banking.

The thought that these bankers would have to work under the strict rules of conservatism of the Europeans and Asians, if they are take over, scares the life out of them. Of course, they will sell this idea to the administration. This is the last domain of American dominance. If it loses in capital raising, we become the Roman Empire.

This is he equivalent of Custer's Last Stand, hopefully the USA is still standing and the government bailouts lead to huge profit generations back to the public coffers.

[bankbars]

comment wrote:

Without a financial intermediaries such as large banks, insurance, and mortgage companies, you do not have a system for access to capital, hence you cannot have capital formation or a growing economic base.
It is important to save the system or you will not have capitalism, or at least capitalism dominated by US led financial firms in global banking or global investment banking.
The thought that these bankers would have to work under the strict rules of conservatism of the Europeans and Asians, if they are take over, scares the life out of them. Of course, they will sell this idea to the administration. This is the last domain of American dominance. If it loses in capital raising, we become the Roman Empire.
This is he equivalent of Custer's Last Stand, hopefully the USA is still standing and the government bailouts lead to huge profit generations back to the public coffers.

Hi There,
As you said every Nation or society requires the big financial institution like Banks ,Insurance companies Mortgages companies.These financial institutions are performing as Backbone for the society.These institutions are the actual pillars of the society. If any of these pillars gets a crack then other corresponding pillars will faces the drastic affect as well. So CitiGroup is such a big and Strong financial Institution.It is Major American Financial Service company located in New York City in USA.If this company suffers due to financial crisis then it obvious that other financial institution will face the drastic affect of it.So very known that government has to take big step with intent to survive these financial institutions. They can do it by providing conveyance , tax deductions, providing financial support by borrowing etc.

[LookingToEscape]

comment wrote:

Without a financial intermediaries such as large banks, insurance, and mortgage companies, you do not have a system for access to capital, hence you cannot have capital formation or a growing economic base.
It is important to save the system or you will not have capitalism, or at least capitalism dominated by US led financial firms in global banking or global investment banking.
The thought that these bankers would have to work under the strict rules of conservatism of the Europeans and Asians, if they are take over, scares the life out of them. Of course, they will sell this idea to the administration. This is the last domain of American dominance. If it loses in capital raising, we become the Roman Empire.
This is he equivalent of Custer's Last Stand, hopefully the USA is still standing and the government bailouts lead to huge profit generations back to the public coffers.

There are two issues:
1) The government indulging in feel good social policy.
2) CEO's and the corporate board of directors taking a holiday from responsibility.
.
Feel good policies need to stop. I do not see that happening under Obama, he is part of the problem, not part of the solution. Obama promoted the policies that have gotten us into this mess.
Corporate types that aren't minding the store need to face stiff penalities such as dismissal without bonus and maybe stock holder lawsuits that could hit them in their pocketbooks. Board of directors should face liability as well.
.
The business world has to strike a balance between daring business ventures and reckless risk taking.

[Drew]

comment wrote:

Without a financial intermediaries such as large banks, insurance, and mortgage companies, you do not have a system for access to capital, hence you cannot have capital formation or a growing economic base.
It is important to save the system or you will not have capitalism, or at least capitalism dominated by US led financial firms in global banking or global investment banking.
The thought that these bankers would have to work under the strict rules of conservatism of the Europeans and Asians, if they are take over, scares the life out of them. Of course, they will sell this idea to the administration. This is the last domain of American dominance. If it loses in capital raising, we become the Roman Empire.
This is he equivalent of Custer's Last Stand, hopefully the USA is still standing and the government bailouts lead to huge profit generations back to the public coffers.

The problems we are going through right now have everything to do with our obsession with credit the past 10 years. I understand that people can not afford college, houses, or cars without financing. I am not saying get rid of all credit just drastically limit Honestly this recession is the best thing for us right now. We are like a drug abuser that has to go though withdrawal in order to get clean. If anything we need to raise interest rates to encourage people to save money. Trying to "save the system" is like trying to keep cancer inside a patient, it makes no sense at all. This whole bailout is smoke in mirrors, it is an attempt to create the illusion that everything will go back to "normal." If we go back to "normal" we will only be digging ourselves deeper for the next inevitable financial crisis. I absolutely believe in capitalism and I understand the need for capital. The problem is we don't have any real capital anymore. We need to get there with solid monetary and fiscal policy, not the status quo.

[Indgnant]

I am one up on you. My brother in law works for Citi , he is according to his own post on classmates website, the P in charge of their "Acquisitions and Mergers" division. if other high ranking Citi officials are anything like him then this company should not receive a cent from the US Gov. Just my personal opinion. BUT if one does one's own research you can find that they were involved in Enron and were fined. They were/are involved in the subprime lending fiasco which precipitated the economic crises we are experiencing. AND, if I remember correctly bought out "L'eggs" and one of the first things they did was cancel credit to thousands of credit card holders. NOT ALL credit card holders ONLY those that paid their balances off too fast. In my opinion, my own personal opinion I'd not give this kind of corporate mentality a cent. It would be in my opinion stupid and counter productive.

[Get Real]

LookingToEscape wrote:

<quoted text>
There are two issues:
1) The government indulging in feel good social policy.
2) CEO's and the corporate board of directors taking a holiday from responsibility.
.
Feel good policies need to stop. I do not see that happening under Obama, he is part of the problem, not part of the solution. Obama promoted the policies that have gotten us into this mess.
Corporate types that aren't minding the store need to face stiff penalities such as dismissal without bonus and maybe stock holder lawsuits that could hit them in their pocketbooks. Board of directors should face liability as well.
.
The business world has to strike a balance between daring business ventures and reckless risk taking.

So Obama hasn't even been in office for one second, one minute or one day and all this is his fault. This is the problem with Republicans,(blind loyalty) It amazes me that even after eight horrible years with this current administration, there would even be anybody who would want to admit to being Republican. At least say it was the Clinton Admin. who created this entire mess,(even though that's bull), but don't blame someone who hasn't even taken office yet. 6 of the 8 years of this horrible administration were spent with a Republican Congress. I thought I'd better point that out to you as well. Now you don't need to blame all the problems on the Democratic Congress.

[Mazikeen]

a Saudi Prince is the majority shareholder at Citi..lol

[LookingToEscape]

Get Real wrote:

<quoted text>
So Obama hasn't even been in office for one second, one minute or one day and all this is his fault. This is the problem with Republicans,(blind loyalty) It amazes me that even after eight horrible years with this current administration, there would even be anybody who would want to admit to being Republican. At least say it was the Clinton Admin. who created this entire mess,(even though that's bull), but don't blame someone who hasn't even taken office yet. 6 of the 8 years of this horrible administration were spent with a Republican Congress. I thought I'd better point that out to you as well. Now you don't need to blame all the problems on the Democratic Congress.

Obama did promote the loose mortgage regulations in his organizin' days though the MSM didn't mention it much.
.
As for the Republican congress, the only problem with them (outside of Iraq) is they didn't spend enough. How do I know that? I watched the Democrats on CSpan b*tch and moan about it. If the Republicans increased funding on a program 8%, the Democrats would say it should be 10%, so they'd then cry the Republicans "cut" the program. I learned a new math, called Democrat math, where an 8% increase is really a 2% decrease. Remember how the Democrats used to cry Republicans cut spending? How could have the budget go up like it did with all those cuts the Republicans were supposedly doing? No one asked the Democrats to explain, no one on the left cared how much they lied.
.
I'm still going to be far nicer to Obama than the Democrats ever were to George Bush, but that doesn't mean he gets a free ride. I didn't care for his ideas (few as they were), I feel he lacks economic experience (how many jobs did he create?). Obama being the first black president means jack to me. It's all about ideas, and Obama had no new ideas, just a phrase.

[police dispatcher]

I'm sure all the reasons posted here for justifying Citigroup's bailout are sound but I have more personal reasons why I couldn't care less if Citigroup goes under.

When my father died in 2003 they refused to negotiate with my mother on trying to lower her mortgage payment. Their customer service is absolute garbage.

I just don't care about their pain when they caused so much to someone I love.

[dodged a bullet]

Mazikeen wrote:

a Saudi Prince is the majority shareholder at Citi..lol

not any more, the US GOV'T is, it wasn't a bailout, they are now the largest investment holders. Saudi Prince no longer is. lol

[Mazikeen]

dodged a bullet wrote:

<quoted text>
not any more, the US GOV'T is, it wasn't a bailout, they are now the largest investment holders. Saudi Prince no longer is. lol

Yes, you are correct..lol so what do we do about china's majority stake in Yahoo?

[just as guilty]

When are we going to bail the little people?

[ImJusSayin]

Get Real wrote:

<quoted text>
So Obama hasn't even been in office for one second, one minute or one day and all this is his fault. This is the problem with Republicans,(blind loyalty)

So Obama hasn't even been in office for one second. Right. This is the problem with everyone who thinks he can do ANYTHING.(blind loyalty)

[Mother jones Psers Fund]

Behemoth ?

Talk about bailouts . Rough estimate by logistics, the PSERS pension fund is down about 20 billion of a month or two ago. They get harder to nail down.

The one thing I do know is there are 264,000 active school employees and 168,000 retirees. A few more thousand retirees and by 2012-13 we will be in a school pension crisis unless the state takes action. Thats you and me?

Who covers the loss in my funds ,while I get the opportunity to cover all the retired too early teachers.

[PSERS]

Mother jones Psers Fund wrote:

Behemoth ?
Talk about bailouts . Rough estimate by logistics, the PSERS pension fund is down about 20 billion of a month or two ago. They get harder to nail down.
The one thing I do know is there are 264,000 active school employees and 168,000 retirees. A few more thousand retirees and by 2012-13 we will be in a school pension crisis unless the state takes action. Thats you and me?
Who covers the loss in my funds ,while I get the opportunity to cover all the retired too early teachers.

Wrong place to put this subject up.

[Joe the plumber]

The Saudie Royal family will not allow the Republicans to blow their money in the stock market... Republicans are always loyal to their masters.

http://www.theglobeandmail.com/servlet/story/...
(quote)

Yesterday morning, Saudi Prince al-Waleed bin Talal, the bank's biggest private shareholder, said he will raise his stake in the bank from 4 per cent to 5 and expressed "his full and complete support to Citi management." The stock had its worst day since the financial crisis began, falling 26.4 per cent to $4.71.