On this day, we found out that the 4th quarter of 2008 had a 6.2% contraction of GDP, far worse than originally thought, the worst performance since the Reagan Administration. For the record, that happened on Mr. Bush’s watch. Stocks ended at a 12 year low (in fairness, during the Clinton Administration, but turing an uptrend). Yesterday we learned that the number of banks the FDIC is keeping a special eye on is up to 252. Good news, there was not an announced bank failure this afternoon, so the tally for the year stands at “lucky” 13. Update: I stand corrected. It’s up to 16.
Before the opening of trading this morning, it was announced that the Feds were going to convert preferred shares to common shares of CitiGroup, and end up owning up to 36% of the company. Citi officials added, however, that they would still control day-to-day operations. Price per share promptly tanked.
Now let me make sure I understand this properly. Citi is so bad off that they need thousands of millions of dollars. They are so big they can’t be allowed to fail. They need to be rescued by the Feds. But never fear, the idiots who got them into this mess will still be in charge.
No wonder there was “dissatisfaction” with the deal.
I’m with Wired on this, we need “radical transparency now“. To the extreme.
In closing: A few choice paragraphs on higher education; America’s worst intersections — is one near you?; CSM asks “Archeological Park or Ethnic Cleansing?”; One in Four Americans put off medical care because of the cost; Homo erectus (“upright humans”) appear to have walked upright (good thing we don’t have to change the species name); I love this paragraph “I kind of love the Hoover Institution. It has all the trappings of being an academic think tank, but none of the actual academics, rigor, intelligence, relevance or inquiry that would normally follow something academic in nature.”; How ironic that a President breaking down the barriers of racism would preside over a nation with “growing hate groups” (seriously, what the heck is with these people?).