onenote
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Tue Apr-27-10 07:09 AM
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Ford earnings up, govt to sell off part of Citigroup stake for 50 percent return |
zipplewrath
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Tue Apr-27-10 07:26 AM
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More like a moral hazard. I bought some Citigroup around the same time the government did. I kinda figured it was a relatively "safe" investment. The government wasn't going to "let it fail" and the price was so low at the time, any mild increase in cost was going to yield a decent return. I made about 12% on the deal. All fine and good. But it is kinda the reverse of what markets are suppose to be. I was basically betting on the government, not the company. One might want to think through very carefully the concept of the government picking and choosing the winners and losers on Wall Street. Mostly because, much like this one, the folks they pick to win may not necessarily be the most deserving, or the best for America in the long run. Politicizing the markets (which admittedly happened long ago) probably isn't really any long term solution here.
That said, what was done here was hopefully roughly a "one time deal". The degree to which I support much of the efforts at the reform package currently being worked is precisely BECAUSE we don't really wanna make this a habit. These firms need to "fail" and shareholder equity needs to be lost. I strongly believe we need some "claw back" provisions as well on executive compensation. (an easy way to do this would be to dictate certain compensation be on a "delayed" basis). The bailouts were poorly executed. Fortunately, they weren't so poorly executed as to have prevented the government from realizing some returns on their investments.
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Botany
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Tue Apr-27-10 07:32 AM
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2. Obama is a damn socialist! |
Uben
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Tue Apr-27-10 07:42 AM
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3. 50% return? That's horrible! |
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Personally, I think they should wait for 51%.....maybe 52%. Just think of the capital gains taxes! Oh... mah god!
Dammit, Obama is beginning to look just like that Clinton fellow. BEfore you know it, Americans will once again become prosperous and have to pay taxes on their new-found wealth, which will strentghen the government to enact more of those socialistic programs that help the poor and less fortunate. The horror! At this rate, we will run out of people to persecute in this country. What good is it to live in a country where you can't even have a group of people to persecute? And here's something even scarier....if we have no poor people, who would mow our lawns? Who would build our McMansions? WHO WOULD FIGHT OUR WARS?
As you can see, we cannot allow prosperity. It would be the downfall of America and our way of life. We must retain a robust upper class that is willing to rule with an iron fist. It's the only way. Yes, I know burdening the rich with ruling this country is asking a lot. After all, they have made their money, why should they have to work at all? At least we can reward them with windfall profits so they can feel like they are getting something....anything!
(do I really have to say it?)
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DU
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Wed Apr 24th 2024, 07:20 PM
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