More Money for Banks

The Federal Government has taken steps to bailout Citibank again, this makes the third time. There is an adage on Wall Street, "Don't throw good money after bad". Obviously this is not a concept that the Federal Government has embraced. Under Bush Citibank was propped up twice, now the Obama Administration feels it was necessary for the third time.

Someone needs to explain exactly why Citibank receives such favorable treatment. Lehman was allowed to fall, yet Citibank is somehow immune from this fate because the Federal Government seems intent on propping up this Bank which obviously had its own little pyramid scheme going on with its books. Citibank last full year earnings were reported at $159 Billion, it is mind boggling that a company that has this kind of revenue stream is not able to maintain on its own.

As the Federal Government continues to pour staggering amounts of money into propping up these bank supermarkets who gambled their money on Securities Obligations, Credit Default Swaps, Equity Trading, Options hedging and the like, the American Middle Class continues to sink to the depths of economic ruin. When any proposal comes up to prop up the American People it is met with disdain from the Republicans in Congress and it is short changed by the Democrats.

The American Electorate elected the Obama Administration along with a Congressional Majority in hopes that the Government would again represent the People, each new Corporate Bailout that is announced diminishes those hopes. Again, it must be stated, a strong, growing and prosperous consumer economy relies on the consumers being able to consume. With staggering unemployment numbers, wealth deprecation, and continuing to ignore the working class and middle class, consumption will continue to deteriorate.

Could it be that the approach begun by the Bush Administration and continued by the Obama Administration of feeding money to the banks is the wrong approach. If the American People had been sent the money that was given to all these banks, consumption would have increased, personal debt would have been paid, and savings would have increased, all of which would have filtered money into the banking system. Banks that were run well would have increased their bottom line, and those that didn't would have shown that there is a major problem with the way they handle money and should have been forced into Bankruptcy. As it stands now, the Banks have received 5 times the value of the Stimulus Bill that was opposed by all but three Republicans, the banks are still falling and the American People are swiftly fading into poverty.

Citibank is being treated like it is the American Treasury, it is not. The continuation of this policy will continue the ruination of the American People.