Citi bailout

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fffresh
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Citi bailout

Postby fffresh » Mon Nov 24, 2008 7:33 pm

I am aware this has been previously discussed on here in other threads but I thought it would be best to create a new thread specifically regarding their bailout.

In addition to the bailout of $25 billion Citi recently received, the new bailout plan will make the US government responsible for all losses of a portfolio worth $306 billion, minus the first $29 billion and that has already been incurred. In other words the federal government will be responsible for over 90% of the liability. The three agencies which will incur the responsibility are the Treasury Department, the Federal Deposit Insurance Corporation, and the Federal Reserve.

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fffresh
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Postby fffresh » Mon Nov 24, 2008 7:37 pm

In addition to the bailout of $25 billion Citi recently received, the new bailout plan will make the US responsible for all losses of a portfolio worth $306 billion, minus the first $29 billion (which has already been incurred). In other words the federal government will be responsible for over 90% of the liability. The three agencies which will incur the responsibility are the Treasury Department, the Federal Deposit Insurance Corporation, and the Federal Reserve.

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Postby bozell » Tue Nov 25, 2008 12:43 am

why do they get another $25 bil without a blink and gm/ford/chrysler cant get it even with a congressional hearing.

this bailout is totally slanted to financial only

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Postby Multi-Purpose » Tue Nov 25, 2008 12:33 pm

bozell wrote:why do they get another $25 bil without a blink and gm/ford/chrysler cant get it even with a congressional hearing.

this bailout is totally slanted to financial only


It does seem to be a partial system where financial companies don't have to prove their worthiness but the auto manufacturers do.
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Postby magyar1045 » Tue Nov 25, 2008 3:38 pm

And also remember - these banks were already bailed out once before - in 2005 when they changed the bankruptcy laws making it harder/if not impossible for folks to file Chapter 7s.

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Postby Mogul of Pineapples » Tue Nov 25, 2008 6:10 pm

]It is totally partial to financials but that is in part because it was only created for financials. The problem is financials are only one of many areas in trouble. If they were going to bail them out, they might as well bail out every other distressed industry too like the autos. They now realize that and are trying to basically re-write the original flawed bailout which didn't include them.

The bankruptcy act of 2005 must be overturned. Everyone seems to think bankruptcy is done by completely negligent people or scamartists trying to screw the system but the truth is the large majority of bankruptcies are the result of unexpected job loss, family emergency, or massive medical bills. There's no reason why these people should be hooked like a ball and chain to their debt no matter what for the rest of their lives.
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Postby JEFF COGA » Wed Dec 03, 2008 5:59 pm

magyar1045 wrote:And also remember - these banks were already bailed out once before - in 2005 when they changed the bankruptcy laws making it harder/if not impossible for folks to file Chapter 7s.


it only delays the process.... why? because longer it is delayed the banks can get a bigger balance to write off...

bail out... sheshh I dont know where to begin... one advice guy gold/silver... the USD is toast.
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Postby fffresh » Wed Dec 03, 2008 6:16 pm

The dollar is toast mostly because there will now be an orchestrated move to create hyper-inflation. In doing so the national debt will become easier to pay back with a weakened dollar.

Think of it this way: I borrow one dollar from you today and pay it back in 5 years with one dollar. Due to the hyper-inflation, for me the borrower, it will be like paying back 50 cents or 25 cents by then, since that is what that dollar will be worth.

If you have the access to it, now is actually the ideal time to run up debt if you are able to pay a low interest on it. You will be paying it back with dollars that are worth less in the future.



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