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View Full Version : Citigroup: US to sell its stake in bailed-out bank



DJ Ms. White
03-29-10, 02:01 PM
The US government is preparing to sell its 27% stake in Citigroup, in what would be one of the largest share sales in history.
http://news.bbc.co.uk/2/hi/business/8593343.stm

triggerhappy2005
03-29-10, 02:47 PM
I wonder what all the economic experts here who cried about bailouts thinks about this.

hawgballs
03-29-10, 02:54 PM
or that the DOW is about to hit 11k......

triggerhappy2005
03-29-10, 02:58 PM
They won't post. They spent too much time posting about the future and getting it wrong.

They're doing it now with health care reform and they'll be wrong about that, too.

Consultant
03-29-10, 03:02 PM
With unemployment still up and inflation poised to increase, I think the present "recovery" is a paper tiger. i could be wrong. It's happened before. Home sales are down, the reports of our national deficit are up...I just dont see where all this positivity is coming from. There seems to be nothing propping up the magical DOW Jones index. Consumer confidence is down, etc..

all signs point to the fact that the bottom is not here yet.

I am not sure the gov't had long terms plans to own banks...hooray for the government returning Citigroup to the private sector and all, but I dont see why this is so spectacular, or surprising.

The stock is at, 4.19 as of this post...I wonder if it's a good time to buy...

jason_jinx
03-29-10, 03:11 PM
but but but

I thought Obama was out to gain control of everything and take over?!!??!?!?!

CivilWars
03-29-10, 03:12 PM
Yeah, we are so wrong about medicare, medicaid, social security, oh wait...

Great, they are selling the stock, but what are they using the money for? Are they going t use it to pay down debt, or fund some other buy now pay later ponzi scheme?

jason_jinx
03-29-10, 03:24 PM
Yeah, we are so wrong about medicare, medicaid, social security, oh wait...

Great, they are selling the stock, but what are they using the money for? Are they going t use it to pay down debt, or fund some other buy now pay later ponzi scheme?


Obama needs cig money, DUH!

triggerhappy2005
03-29-10, 03:29 PM
Aint the US great?

All these companies posting nice profits and they don't feel like they should give back and hire some people.

I blame profit greedy businesses that think they operate in a vacuum.

Henry Ford had it right when he said you should pay your employees as much as possible. That's called doing the right thing.

Highstakes72
03-29-10, 03:34 PM
or that the DOW is about to hit 11k......


I try very hard not to encourage the celebration of mediocrity. 15k...I would be all over it.

Highstakes72
03-29-10, 03:38 PM
Aint the US great?

All these companies posting nice profits and they don't feel like they should give back and hire some people.

I blame profit greedy businesses that think they operate in a vacuum.

Henry Ford had it right when he said you should pay your employees as much as possible. That's called doing the right thing.


Lead from the front.

Blakeman
03-29-10, 03:39 PM
Yeah, we are so wrong about medicare, medicaid, social security, oh wait...

Great, they are selling the stock, but what are they using the money for? Are they going t use it to pay down debt, or fund some other buy now pay later ponzi scheme?


They might have to sell it because of social security being in the red this year.

CivilWars
03-29-10, 04:31 PM
Didnt we have to implement child labor laws and unions because of guys like henry ford?

hawgballs
03-29-10, 04:40 PM
or that the DOW is about to hit 11k......


I try very hard not to encourage the celebration of mediocrity. 15k...I would be all over it.
Never hit 15k, ever, so you would be all over it on it's all time highs? 11k is not mediocre friend... and that looks to me to be an uptrending market.... http://www.the-privateer.com/chart/dow-long.html
Monthly chart not including the bar with this month's new highs. New highs at levels that haven't been seen in over 18 months. Mediocre? Meh.....

...bigdog...
03-29-10, 04:45 PM
or that the DOW is about to hit 11k......
it's inevitable that the Dow is going to hit 11.

Why the fuck it's taking so long should be the rational answer.

As for all this stimulus whining....I never understood the issue anyway. IF the goverenment can loan businesses that need the money, who will use it to recover, and then pay it back at a profit/interest.....then why the hell not? Do it all the time, I say, and repair some of the holes in the budget by doing so. Right (of course, I think it's unconstitutional or osmething for the US to become a loan/bank in that sense....but still).

And lest we all NEVER forget.....none of the stimulus package was the idea of Obama. Shit went through, and was voted on, during the Bush administration (and likely was the cause of the republicans losing the presidential election...at least in part).

Feel free to claim it, like idiots, though.

hawgballs
03-29-10, 04:49 PM
Didnt we have to implement child labor laws and unions because of guys like henry ford?
Well not so much Henry Ford, but I bet he played a bunch of golf with the ones these laws were made for...http://en.wikipedia.org/wiki/Child_labour

triggerhappy2005
03-29-10, 04:49 PM
I practice what I preach...here in France. ;)

...bigdog...
03-29-10, 04:52 PM
Mediocre? Meh.....
if mediocre means the median for the last 10 or so years....sure.

http://img707.imageshack.us/img707/163/73877478.jpg

even then...on either side....how is an index like the DOW useful, if the index itself picks and chooses which stocks will even be on it? Not a very steady way to guage anything....given it's thus rigged.

right?

CivilWars
03-29-10, 04:52 PM
I thought I read somewhere that unions started partially because ford made line workers stand up for hours on end with no breaks. I will look for a source when I get home, or apologize for my false accusation.

RagunCajun
03-29-10, 04:54 PM
Tell me it ain't so!!

Surely our Government isn't going to try to make a profit from this... are they?

I mean, don't they know that making profits is a terrible thing to do? it's downright unpatriotic!

Our Saintly Prince of Paupers wouldn't allow this to happen would he?

I think we should dump it all on the market at once, take what little cash we get and donate it to the Hugo Chavez, Presidente' for life, election campaign.

Not only can we feel better about ourselves for doing it, but think of all those in Venezuela who would benefit from such a generous and magnanimous gesture.

Perhaps, if there's enough left over, we can ship a load of FEMA trailors to Israel, and keep them from building new homes.

...bigdog...
03-29-10, 04:55 PM
Perhaps, if there's enough left over, we can ship a load of FEMA trailors to Israel, and keep them from building new homes.
oh that's a great idea. Instead, they'll just drag "made in the USA" shitty trailers and put em up on blocks all over the contested territories.

That's going to bring peace to the region. American trailer parks in the West Bank.

DJ Ms. White
03-29-10, 04:57 PM
:D

RagunCajun
03-29-10, 04:59 PM
Aint the US great?

All these companies posting nice profits and they don't feel like they should give back and hire some people.

I blame profit greedy businesses that think they operate in a vacuum.

Henry Ford had it right when he said you should pay your employees as much as possible. That's called doing the right thing.


Is this the same Henry Ford that hired thugs to be strike busters, or thought Hitler was good guy? or are you thinking of another Henry Ford?

hawgballs
03-29-10, 05:22 PM
Mediocre? Meh.....
if mediocre means the median for the last 10 or so years....sure.

{scaled down chart showing smaller time period, yet still showing significant 50% retracement}

even then...on either side....how is an index like the DOW useful, if the index itself picks and chooses which stocks will even be on it? Not a very steady way to guage anything....given it's thus rigged.

right?
Yeah, pretty insignificant, to come off your decade lows and to spring through the 50% retracement reaching levels that haven't been seen in 18 months.......... And making new highs. Look at the graph in my link and it will give you a better idea as to the significance of these price levels. Should we ignore that the price levels of the DOW have been steadily been higher lows and higher highs, making a uptrend?


The last time DOW switched a stock in the index was about a year ago, they added CISCO and Travelers insurance...... Please explain to me how their reliability as a indicator of the health and vitality of our industrial sector is somehow compromised by replacing stocks on their index? Can you name any other indices that could be more reliable than the DOW as a indicator that do not switch out stocks in their index?

Because it sounds to me that you, although might be a smart guy, are a bit unlearned in this subject...



http://www.the-privateer.com/chart/dow-long.html

Langrad
03-29-10, 06:00 PM
Im sure im in he minority here but I feel that the businesses in the US need to have MORE government intervention. We get shit like Enron, the housing market, and all the other BS businesses pull off to maximize profits while fucking the workers royally. Why would you sell a house to a guy who can barly make the monthly payments at time of sale and then have the interest rate skyrocket in 2-3 years? Most Americans are fucking stupid.

People dont save money anymore, always buying the newest TV or car. I think the government needs to actually go through the tax information they get from companies that are doing surprisingly good and see what kind of bullshit they are pulling. Companies need to realize that they cant expect constant growth. There has to be stagnation and losses somewhere along the line. Whenever a big company posts a 5% loss of sales compared to the previous year and you see they have gained doubled their profits in the last few years of operation why make such a big deal about it?

Like with the Guitar hero games and rockband games. Sales dropped by over 50% recently and apparently it was big news. Well no fuck, you released 50 games for that genre in the last 3 years. No one wants to pay $50 to get to play 20 Beatles songs. We need to do a major fucking overhaul of how we do business.

</end rant>

CivilWars
03-29-10, 06:06 PM
Make all the laws you want, but you will never be able to eliminate greed or stupidity.

draco7891
03-29-10, 06:14 PM
The question to be asked is not what or how much but WHY; is this publicity to buoy flagging voter support and quell fears of a socialistic government? Is this the clarion call of a company now on sound footing, ready to get back to work?

Or perhaps is it that the government has recognized what an unsalvagable mess Citigroup has become, and is seeking the quickest and cleanest divestiture of their interests while there's still profit to be made before the whole thing finally collapses under its own weight, 2 years and billions of taxpayer dollars later.

Draco

Highstakes72
03-29-10, 06:16 PM
Im sure im in he minority here but I feel that the businesses in the US need to have MORE government intervention. We get shit like Enron, the housing market, and all the other BS businesses pull off to maximize profits while fucking the workers royally. Why would you sell a house to a guy who can barly make the monthly payments at time of sale and then have the interest rate skyrocket in 2-3 years? Most Americans are fucking stupid.

People dont save money anymore, always buying the newest TV or car. I think the government needs to actually go through the tax information they get from companies that are doing surprisingly good and see what kind of bullshit they are pulling. Companies need to realize that they cant expect constant growth. There has to be stagnation and losses somewhere along the line. Whenever a big company posts a 5% loss of sales compared to the previous year and you see they have gained doubled their profits in the last few years of operation why make such a big deal about it?

</end rant>


There were commisions and agencies that were supposed to be watching...They weren't. The housing bubble was a Federally underwritten venture and not a result of poor management/failure to adapt that the automakers are seeing. Believe it or not, being in business does not mean you are fucking someone over.

triggerhappy2005
03-29-10, 06:22 PM
The question to be asked is not what or how much but WHY; is this publicity to buoy flagging voter support and quell fears of a socialistic government? Is this the clarion call of a company now on sound footing, ready to get back to work?

Or perhaps is it that the government has recognized what an unsalvagable mess Citigroup has become, and is seeking the quickest and cleanest divestiture of their interests while there's still profit to be made before the whole thing finally collapses under its own weight, 2 years and billions of taxpayer dollars later.

Draco


Or this is a pointless attempt at being eloquent.

Or...or, Citigroup was in a position to pay the money back.

In fact, perhaps they did it to get out from under the restrictions that come with being indebted to the US government.

See, Draco, it was Citigroup's decision to pay back the money, not the Government's

Trigger

draco7891
03-29-10, 06:35 PM
See, Draco, it was Citigroup's decision to pay back the money, not the Government's

http://www.ustreas.gov/press/releases/tg615.htm





March 29, 2010
TG-615

Treasury Announces Plan to Sell Citigroup Common Stock

WASHINGTON The U.S. Department of the Treasury today announced its intention to fully dispose of its approximately 7.7 billion shares of Citigroup, Inc. common stock over the course of 2010 subject to market conditions.

Try again.

Draco

triggerhappy2005
03-29-10, 06:41 PM
See, Draco, it was Citigroup's decision to pay back the money, not the Government's

http://www.ustreas.gov/press/releases/tg615.htm





March 29, 2010
TG-615

Treasury Announces Plan to Sell Citigroup Common Stock

WASHINGTON The U.S. Department of the Treasury today announced its intention to fully dispose of its approximately 7.7 billion shares of Citigroup, Inc. common stock over the course of 2010 subject to market conditions.

Try again.

Draco



I was referring to TARP funds but you are right that the government decided to divest itself.

That being said, it's a bit cynical not to mention baseless too assert that it was done b/c the government fears a collapse.

Trigger (just in case you forget who posted this)

draco7891
03-29-10, 06:58 PM
That being said, it's a bit cynical not to mention baseless too assert that it was done b/c the government fears a collapse.



Or perhaps is it that the government...

Speculation, not assertion. A question asked, not a statement made. Do you disagree that, given intimate knowledge of the operations and bookkeeping practices of such a company, the government would not be in a good position to understand whether maintaining their investments was an intelligent and profitable decision?

Do you disagree that if such decision was unwise and/or unprofitable, that the best course of action would be immediate divestiture?

Then again, you do lately seem to be the champion of staying aboard proverbially sinking ships...

Draco Who knows how to make text smaller than you do

triggerhappy2005
03-29-10, 07:07 PM
That being said, it's a bit cynical not to mention baseless too assert that it was done b/c the government fears a collapse.



Or perhaps is it that the government...

Speculation, not assertion. A question asked, not a statement made. Do you disagree that, given intimate knowledge of the operations and bookkeeping practices of such a company, the government would not be in a good position to understand whether maintaining their investments was an intelligent and profitable decision?

Do you disagree that if such decision was unwise and/or unprofitable, that the best course of action would be immediate divestiture?

Then again, you do lately seem to be the champion of staying aboard proverbially sinking ships...

Draco Who knows how to make text smaller than you do


No, I assert that the government fully intended to divest itself when the opportunity presented itself. Purchasing the stock served only to capitalize the bank and lift confidence. Obviously, the bank needs neither now so it only makes sense to divest.

But, looked at another way, why would the government divest itself of a 'sinking ship', only to be party to another financial crisis. Doesn't make much sense.

Trigger (who can do it smaller and with more flair)