Monthly Archives: November 2008

My View on the Bailout de Jour

I appeared on Business News Network November 24, 2008 to talk about how the U.S. tax payer got shafted by the deal to save Citigroup. While there is no doubt that federal intervention was necessary, the terms of the deal … Continue reading

The Shroud of Citigroup

Image courtesy of Bill Barfield

Image courtesy of flickr/Bill Barfield It wasn’t that long ago that Citigroup was considered a “good” bank.  Remember October 1, 2008? Citigroup announced it was acquiring Wachovia with the help of the FDIC. You had to be strong to do … Continue reading

We Need Another Flip-Flop (Seriously!)

Image courtesy of flickr/The Consumerist

Take Goldman Sachs. Around the time of the TARP equity injection announcement, it was trading for about $120 per share. It is currently below $60. That’s not as serious as some others. Citi’s current market cap is about $25.7 billion … Continue reading

A Waste of TARP

Bank of America is making a $7 billion dollar cash investment into China Construction Bank. Bank of America received $15 billion directly from TARP and will get another $10 billion (when they close the Merrill Lynch acquisition at year end). … Continue reading

What’s Good for General Motors is Good for the Country

Image courtesy of Wikimedia Commons

How ironic. Congress is entertaining a $25 billion bailout of the autos. The President and Secretary of the Treasury are OK with this as long as it doesn’t come out of the $700 billion TARP money. To the average person, … Continue reading

Children in the Candy Store

Image Courtesy of Wikimedia

The bad news keeps piling in: $150 billion commitment to a non-bank, AIG GE Capital (which is not a bank) gets FDIC Insurance backup for $139 billion American Express and CIT Group are now banks – I guess everyone is … Continue reading

The Hurdles the New President Faces

Image courtesy of Wikimedia Commons

President-elect Obama wants to avoid the Herbert Hoover scenario. In this scenario, many economic initiatives are tried but fail to bring the U.S. out of recession. The high expectations are not met. The result: a single term. Of course, there … Continue reading