"Too Big To Fail?"

Another "To big to fail" financial operation, Citigroup.
I suppose GMC, Ford, and Chrysler together are not too big to fail?
The housing market is also not too big to fail!
The jobs market is also not too big to fail!
The states themselves are not too big to fail!
We are pouring money down a rathole giving it to these decrepit money changers. "Dribble down is dead!"

Here is what will happen next week or this week-end:
Citigroup will be allowed to merge with someone after we, the taxpayers, buy their toxic loans! The stock will go up and make the shareholders happy with our money!
We don't owe the bank or the shareholders a dime! Invest those billions here locally and watch the economy fly immediately.

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Bonkers, Kathy Cox, Citigroup and lessons learned
mapleleaf's picture
Submitted by mapleleaf on Sat, 11/22/2008 - 5:52pm.

Unfortunately, you’ve got the story a little bit wrong, Bonkers.

You see, the Citigroup stockholders, that’s us. Few of us may have direct investments in Citi stock, but many of us have indirect investments in bank stocks through pension funds, mutual funds, and 401k plans invested in mutual funds.

I was reflecting about Kathy Cox’s bankruptcy earlier today, thinking about the $3.5 million she and her husband owe that they plan to walk away from. That $3.5 million is most likely owed to banks. Generally, I wouldn’t weep for a bank, but it’s the bank’s stockholders who are the real losers, and that includes a lot of people who were saving for their old age, or to send kids to college, etc.

What disturbs me about Kathy Cox is that she gave away the $1 million she got on the show Are You Smarter Than a Fifth Grader? Was it her money she was giving away, or was it the money she and her husband owed to the creditors of his business? These creditors may have included hard-working trades people like bricklayers, electricians, carpet layers, etc.

We live among very insensitive people, Bonkers, people who don’t think about the consequences of their actions on other people. When your own investments tank, you’ve got to be able to see who’s responsible. Voting for them is not a smart idea. Ever.


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maple leaf: I'm not wrong!
Submitted by Nitpickers on Sat, 11/22/2008 - 6:09pm.

Yes, a little of our savings is in a mutual fund account. We may have to wait years to get all of it back, however we put most of ours in our home & FDIC insured---long ago. I saw this coming just didn't know when. No matter what our home is worth, we can live in it---we own it!

I think I explained to you and others in a previous comment about the Cox donation---they surely knew the score when that was done!
I regret it for them and many others to come. He simply owed too much for his assets!
People Used to end up millionaires, but they lived frugally most of their life doing it. Only sure and safe way. Rest is gambling.

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