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Tuesday, November 25, 2008

Government uses $306 billion more to bailout bank!

I woke up this morning in a fairly decent mood. Like I do every morning I check the news online to see what is happening around the world, and to see what else the government may have screwed up today. As if not to be disappointed the first thing I read this morning was this headline: CitiGroup gets massive government bailout

WHAT!?!?!?!?!?!?!?

And here is the first paragraph:

(Click for full article)
NEW YORK (Reuters) – The U.S. rescued Citigroup Inc, agreeing to shoulder most losses on about $306 billion of the bank's risky assets, and inject new capital, bolstering investor hopes that the government will support big banks as the economy sinks into recession.

The bailout, announced late Sunday, gives the government the right to buy an equity stake, and marks its latest effort to contain a widening financial crisis that has already brought down Bear Stearns Cos, Lehman Brothers Holdings Inc and Washington Mutual Inc.

Remember that $700 billion dollar bailout that the taxpayers favored were completely opposed to and our representatives voted for them anyway? Yes well as I posted a while back it is not being used for "bailing" out anymore. This $306 billion is not coming from that money, it is additional!

Notice the article says that the government will shoulder most of the losses. This continues to set up an issue of these companies running their businesses into the ground and then the government takes over all the burden and the company is fine, as a matter of fact the government is now guaranteeing CitiGroup.
U.S. President George W. Bush called the bailout necessary "to safeguard our financial system," and said the government would, "if need be," make similar decisions in the future.

This is what President Bush said last time as well. Did it safeguard the economy? NO! The market is still plunging!

I have said it before and I will say it again....LET THESE COMPANIES FAIL!!!! We will never have a sound economy if we continue this crap. This is like a farmer growing weak plants and then simply propping them up and using them year after year. His profits will be bad, his food will be bad. Instead the farmer would figure out how his entire farm can be stronger and adjust accordingly.

Now don't get me wrong, the government is a farmer too, except the only thing in the government's fields are shit, and they keep taking more shit from failing farms.

Contact your representatives. Tell them you are taking note and they will pay come election time. Tell them you are watching.

Anthony

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