Tuesday, December 15, 2009

More Billions for Citigroup? WHAT!??!?!?!

Jesus. The deal the govt quietly gave to Citigroup gives it billions in tax breaks. Citi should be the first big bank broken up, but instead we keep giving Citi boost after boost. The scary part of this is Citi needed this $38 billion or it would have to raise more capital. This is right after they just raised billions to pay back TARP. So one one hand they are healthy enough to get out of TARP, but they are sick enough that they need a tax break from the govt. This is absolute bull. It's sick that this TARP is now going to be a slush fund for more spending and later bailouts. It's sick that the govt is pushing the banks to lend like they used to right after we chastise them for lending irresponsibly.

By not breaking them up, when the next crisis hits and asset concentration is even worse for the big banks, the govt will have no one to point the finger at by themselves. The Obama admin is so short sighted not to see that the next time a shoe drops and a fuck up happens in the financial/econ world, people will ask them why Barry and Co did not breakt he big banks up to prevent this. This is kind of like preventing a 2nd terrorist attack after 9/11. Bush-Cheney knew if that did happen again, they'd be blamed. It's hard to rally around leaders who let the same shit happen twice on their watch.

No comments: