Tucson By Choice!: Fox News Headline: "The Government Is Lending Citibank A Helping Hand"

Fox News Headline: "The Government Is Lending Citibank A Helping Hand"

A helping hand?  (We're your elected officials, and we're here to help...) 

By converting preferred stock to common stock, your government now owns 36% of Citibank.  Like the rest of the "good news" from our stab-in-the-dark, blindfolded congress, this won't be good.  Not for you the taxpayer, not for CitiGroup, not for the country, and in this case, not for the world economy.

This is the third attempt to bail out Citibank.  The first two were not free, but billions (your money) of dollars are gone.  Evaporated.  Oops!  Let's try again.

Citi's stock, already at an 18 year low at the close of business yesterday, lost another 37% on the news, falling to a low of $1.50 per common share.  The "good news" is that our elected officials, instead of converting the preferred stock at a price of $5 per share, only paid $3.25 for something that's now worth $1.50. 

Wow!  Congress is really fixing the banking business!  These people should think of running the Big Three automakers. Imagine how quickly they could run that into the ground. 

Oh.  And healthcare's next.

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
Think of me as your Tucson mortgage expert.


Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

Comment balloon 19 commentsMike Jones • February 27 2009 02:01PM

Comments

Mike,

I'm going back to your other post and look at the sunsets and saguaros...!!! Thanks,   Fran

Posted by Fran Gaspari, "The Title Man" - Title Insurance - PA & NJ (Patriot Land Transfer, Inc.) about 11 years ago

Citibank's a train wreck!

Fran,

You'd better do that.  This is a train wreck, and congress is driving the train...

Mike in Tucson

 

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 11 years ago

Mike - I agree with Fran. I will also try to find some nice photos of warm faraway places LOL. I could still blog from a beach somewhere :) ~Rita

Posted by Brian Burke, Broker & Advising Expert-Denver Luxury Real Estate (Kenna Real Estate) about 11 years ago

Mike, Seems more like they're positioning themselves for a take over. Then again, what the heck do I know. I can actually balance my check book and live within my budget.

Posted by Suesan Jenifer Therriault, "Inspecting every purchase as if it were my own". (JTHIS-Professional Home Inspection Team) about 11 years ago

Can't comment.  I'm speechless.

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) about 11 years ago

Lenn,

I have 10 grandkids, and I don't like the world we're leaving them.

Suesan,

You're my hero.  Why don't you run for office?  :)

Rita,

I'm building my Send Out Cards business because that's just what I want to do--blog from a beach somewhere warm.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 11 years ago

I hear you Mike, my husband and I raised 7 children, we have 7 grandchildren, 8 is on the way. We did it on our own without any kind of handout. I hate what's happening and I hate the fact that so many can't see it.

Posted by Suesan Jenifer Therriault, "Inspecting every purchase as if it were my own". (JTHIS-Professional Home Inspection Team) about 11 years ago

The longer we take to let them fail the longer it will take to recover from it. Are they worth saving?

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) about 11 years ago

We just need to print more money. Governments can do that. Wish I was a government -- LOL.

Posted by Jim Frimmer, Realtor & CDPE, Mission Valley specialist (HomeSmart Realty West) about 11 years ago

I don't begrudge Citibank any of the money they have received.  I just simply want to know HOW CAN MY SMALL BUSINESS GET SOME OF THAT MONEY, TOO?  :-)

Posted by Cheryl Johnson about 11 years ago

Now we as proud taxpaying Americans now own 36%. Just the 2009 version of the Monopoly game

Tony

Posted by Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv (REISA - 317-663-4173) about 11 years ago

Citi Just sent me that my credit card rates were going up due to economic issues. There issue not mine. I transfered balances to my local bank. Must of been the government's way of helping.

Posted by Chip Jefferson (Gibbs Realty and Auction Company) about 11 years ago

Laura

I just can't see that propping up failing businesses is going to get us out of this mess.

Tony,

It's your childrens' future, and it's no game.

CJ,

I do.  Let's say you have $3,000 to invest today.  Would you invest it in Citibank?  Thanks to our congress, you just did.

Jim,

Run for public office!

Terry,

Nope!

Suesan,

The numbers are so big that we give up thinking about how to improve the situation.  Thanks for commenting.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 11 years ago

I am reblogging this.

Posted by Kevin Robinson, Fractional Developer about 11 years ago

Kevin,

Thanks for re-blogging!  Come on back any time.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 11 years ago

Mike,

I'm with Lenn, I'm speechless!!!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) about 11 years ago

Dorie,

The latest this evening says that the congress may not be through dumping money down the citi drain...

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 11 years ago

Hey Mike, the IV that is being given to Citi is bad for everyone.  Better to just pull the cord.  Citi is a zombie bank, it's insolvent .  Any other industry would be restructured.  The challenge is that the banking executives are as powerful as congress.  The money that they have invested to Congress is unthinkable.

We need to move in, separate the good assets from the bad assets and sell off the pieces.  Giving a lifeline is simply encouraging more risky behavior.  It's nutty.

Posted by Kate Bourland, Onlilne Marketing Mobile Marketing (Marketing with Kate) about 11 years ago

Kate,

Your analysis is right on!  Thanks for stopping by; I'll see you soon on your blog.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 11 years ago

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