The governments Your stake in Citigroup is $45 billion. The company is only worth $5 billion at this point, and if recent trends continue, it will be worth far less, very soon.
Yes, now you can own a substantial piece of Citigroup yourself. The stock price has fallen to a buck. That’s right $1. Many act surprised that a company that not that long ago had a market cap of over $277 billion is now in penny stock range. Not that there’s anything wrong with penny stocks, but normally those types of companies are on the way up, or at least planning it that way.
Not so with Citigroup. Risky loans and even riskier investments have exposed this bank for what it is (or was): a fraud. That’s right, Citigroup, along with many other ailing banks were built upon a lie, enticing investors with the illusion of blue chip reliability. But horrible loan decisions, combined with risky mortgage bundles and dubious credit default swaps have finally caught up with these geniuses of Wall Street. They knew what kind of lie they were perpetuating; they were just hoping to keep it going until their golden parachutes were ready to open.
It all blew up in their collective faces though, and now Citigroup is doomed to failure, as is AIG, and possibly Bank of America as well. And they should be allowed to fail. These companies are just facades of real business, and if Obama really wants to stimulate the economy, he’ll stop having his treasury bitch Geithner dump more and more of our money into these toxic companies.
You tell me, is paying for something 9X its worth going to stimulate your personal finances? No, not mine either…