Well thank goodness the full faith and credit of all of us God fearing, hard working, credit card buying Americans is there for CITI Group & its banking affiliated. I saw a Saudi Prince on the news last night assuring me, that he was still going to use the group for his investments, since we Americans are there to back up the bank! Whew, that was a close one!
Wasn’t it only last month that this group was saying, “I’m so big I can buy Wachovia!” Yeah, right. As usual, things were not what they appeared to be. One would be hard pressed to be surprised by anyone’s balance sheet these days. Have we all forgotten the accounting shenanigans that were part of the Enron mess!
To add insult to injury, the big three automakers last week went to Washington for bailout money. Here’s a hint guys, don’t each of you fly your own company Jet to the meeting. Car pool anyone? Hard to look too needy when you have than kind of coinage. But we have to give them credit for one thing, in their world, as in yours, banks rarely lend money to people who need it. These guys don’t need a loan, they need new PR people!
But I digress, back to CITI group who now promise not to pay dividends to their shareholders and to curtail any more of those crazy lend lend lend without collateral deals to anyone. They didn’t promise to not buy mortgaged backed securities yielding high short term interest rates, but hey, we can only ask for so much!
While I don’t do business at banks that don’t requite twenty percent down on anything bigger than a toaster oven, it appears the world has been having a great time borrowing what it had no intention of paying back. And in a rush to maintain some stability to the system, you and I are picking up the tab. Who started this bail them out stuff anyway? Oh, yeah the President!
To add insult to injury what we read and see and hear in the media rarely matches what we see for our own eyes all around us. It’s almost as if the news is being used to get us to go along with the robbing of our own banks, by assuring us that this bailout and that bailout are needed. But still, every bank that I deal with says they are secure and want to know how much I want to borrow. They also aren’t paying didly squat on interest rates on money that I have in their bank. If you can get more than three and a quarter on a CD go for it!
The local mall is a bit of conundrum as well. Sales galore and people buying left and right was all I saw last weekend. Yet, according to my evening news the stores should have been empty. Everyone should have been out watching the new Vampire movie, Twilight and holding off on buying anything but dinner at McDonalds! I hear that is a good blood sucking movie, but then again it pretty much figures into our financial problems right now, the sucking part that is!