I think this Citibank deal is a really bad sign.
Having to
guarantee $300 billion of crap (i.e. bad loans) in order to save one big bank is just nuts. That’s
$1000 per American citizen. And just a month or two ago, Citibank was one of the "strong" banks bidding on Wachovia.
So it makes me wonder, just how bad are things at the other "strong" banks? I know George W. Bush says we can do more of these deals, but it makes me question how many of these deals we should be doing!
You can read a related article on this topic here.
