My Post Inspirations/References
Plenty of Citi (C) action today with even more questions as news came out. My items to use:
Citigroup Gets Huge New $38 Billion Bailout, Wiping Out All Of The Taxpayer's "Profits"
Yahoo Message board reaction to said news:
This is SWEEEEEEEET!! Read!
Citi Price Rumored At $3.15, $20.5 Billion In New Securities, Government To Keep $5 Billion In Common Stake As Below Cost-Basis
Citi's Secondary Prices Weak, Treasury Holds Back On Dumping Stake To Avoid Flooding The Market
I had a few bones to pick with Calculated Risk today as it seemed he was inconsistent:
Citigroup's "Massive" Tax Break
CR was moved to add:
"Who benefits? The value of the shares the U.S. owns should increase, but only 34% of the share price increase accrues to U.S. taxpayers The other current shareholders receive the rest. So this doesn't seem to make sense ..."
Later concerning the FOMC statement, CR was quick to get behind the FED line about sticking to their exit timelines:
FOMC Statement: No Change
The Fed is also making it clear they intend to stick to their deadlines.He reiterated this point several times in the comments section.
Of course he may have missed the closing section of the FOMC release, which of course Mish did not:
Bernanke Trots Out the Boy Scout Motto
Boy Scout Motto
In case you missed the key paragraph, it has nothing to do with "anticipation", "appears", or "expect" and has everything to do with the Boy Scout Motto, "Be Prepared".
"The Federal Reserve is prepared to modify these plans if necessary to support financial stability and economic growth."
I suggest you forget about expectations and plan on Bernanke acting in accordance with the Boy Scout Motto.
I also was going to include a great Gold article as I am apt to do:
Paper Currencies - Trampoline Jumping
"Gold is a great hedge against government insanity and instability and we are in a secular cycle of government insanity and instability right now. Gold is not a simple asset class (as the ignorant commentators shouting "barbarous relic" would have you believe), it is not a consistent inflation or deflation hedge, and it is not just an anti-Dollar play."I like it.
Have at it and I will be back tomorrow.
Have a good night.