Economic News/Discussion

[falcon_view]

For now markets are not liking it, down...

http://www.bloomberg.com/markets/stocks/futures.html

[jimzinsocal]

Ill assume today may be a down day.^^Hard to imagine shareholders being thrilled to see "nationalization lite" unfold before their eyes.

Also. I mentioned the FDIC earlier in the week and its inability to act as receiver should C go south. Here is the basis for that assertion

http://www.washingtonpost.com/wp-dyn...603005_pf.html

[jimzinsocal]

For now markets are not liking it, down...

http://www.bloomberg.com/markets/stocks/futures.html

Look at Citi specifically

http://finance.yahoo.com/q?s=c

as of right now? Shares are off 40%

[falcon_view]

WOW and the low $1.15 with hi volume

http://www.nasdaq.com/aspxcontent/Ex...ymbol=C&symbol

[AeroSim]

cap and trade discussion from our friends over here:

http://volokh.com/archives/archive_2...tml#1235712057

If Obama succeeds in his quest to reduce carbon emissions by 83% by 2050, American business will be destroyed. Manufacturing in the US will essentially disappear to countries that do not have anti-business, anti-growth policies, mostly in the Far East.

Stupid is as stupid does. If you want to see what kind of economic depression all this regulation & outsourcing does- take a trip down the Eerie canal in western New York. Those people must be used to it by now, but all that's left of industry are boarded-up museums, downtowns with tons of empty space and the only thriving businesses are the open-air flea markets selling tourist trinkets made out-of-country, artwork and T-shirts. Not a new anything to be seen- nary a paint job. Wonder what they'll do when people no longer have money to travel....

I walked away thinking that could be America's future across the board because we are stuck on environmental-stupid and a lawyer's spoiled rotten view of the world.

[Enmore]

More bad news:

US recession deepens on shock GDP decline

By Grainne Gilmore

The US economy shrank at the fastest rate since 1982 in the final three months of last year, far worse than the US Government had initially estimated.

Gross Domestic Product (GDP) fell at an annual rate of 6.2 per cent between October and December, above initial estimates of a 3.8 per cent decline during the fourth quarter of 2008.

The world's largest economy was dragged deeper into recession due to a huge fall in global demand for its products, with exports tumbling at an annual rate of 23.6 per cent - the steepest decline since 1971 and more than the 19.7 per cent drop estimated last month.

http://business.timesonline.co.uk/to...cle5815931.ece

[falcon_view]

I was sure we would see the DJI in the 6ooos today, but the day is young.

[AeroSim]

Just peeked at Citi-

1 hour in and they've already traded 600 million shares. How would you like to be on that floor wanting a cup of coffee....

Jeez- the DJIA and NASDAQ will have to trade hard to keep up....

Edit: Oh yeah- down 30%ish

[old82]

More bad news:



http://business.timesonline.co.uk/to...cle5815931.ece

wasn't this already talked about? i thought it declined less than they expected.

[jimzinsocal]

^^Citigroup. Today will be interesting to see how shareholders react.
I wouldnt be pleased as the Fed move should dilute what value my shares
have at present. From what Ive just read were talking about something around 36% as the percent of Government ownership in Citi.
Im also curious to see how market Cap changes thru the day.
No doubt it will jump above the 15B threshold required by NYSE

http://money.cnn.com/quote/quote.html?symb=C&sid=117685

Here is the market cap as of now

Market Cap (mil):
13,407.25

And right now after working that Federal "magic"?

Market Cap (mil):
8,229.65


The folks I feel most for are Citi employees whose pensions are tied to C common stock
or anyone whose pension took the bath.

5,175 Billion up in smoke in one morning.

[jimzinsocal]

The US government agreed to boost its stake in Citigroup to as much as 36%, shoring up the bank's capital and taking on far more control of the ailing banking giant. The government will convert up to $25 billion in preferred shares to common stock in its third attempt to prop up Citigroup in the past five months.
Existing shareholders will see their ownership of the bank fall as low as 26 percent. The government stake is now close to 8 percent.
While the latest rescue does not inject more money into Citigroup, it gives the government more of a voting stake and far greater influence over the bank's operations, short of outright nationalization.

"The government is the new boss," said Mike Holland, the founder of money manager Holland & Co in New York. "Every major decision is something that is not going to come out of Park Avenue, but is going to come from Washington, D.C."

[Dutchcedar]

^^^ So do I pay my credit card balance to the US Government, or can I just send them some of my common stock? Maybe I should just ask for a bailout from the new owners.

You know this is insanity, right?

Citi has turned into a vacuum.

[jimzinsocal]

https://customers.reuters.com/d/grap...T_CITI0209.gif)

[jimzinsocal]

^^^ So do I pay my credit card balance to the US Government, or can I just send them some of my common stock? Maybe I should just ask for a bailout from the new owners.

You know this is insanity, right?

Citi has turned into a vacuum.

More here Dutch. I cant wait to see the new and improved Board of Directors.community organizers/government folks that basically hate
banks and have a bone the size of Montana up their asses around any business that operates at something > 0 profit

http://online.wsj.com/article/SB1235...oo_hs&ru=yahoo

[jimzinsocal]

Market Cap update for C

Market Cap (mil):
8,202.40

27 million went away in the past hour. Government plan working like a charm.


Bank of America Shares show the wisdom of Federal Citi group move

Shareholders have confidence restored[rolleyes]

4.03-1.29 / -24.29% 3:15pm ET