Friday, February 27, 2009

State Bank of USA

Guys, Citibank is on the verge of becoming a Penny Stock ( frequently described as any stock with market value less than a dollar). Bank of America is following suit fast.
When Citigroup was formed about a decade ago, I remember the then chariman " admitting" on TV that he felt like a hero.
Now Uncle Sam, by buying close to 40% of Citibank's equity, is converting this Wall Street icon into THE STATE BANK OF USA!!! I wonder who ever created the USP for Citi " The Citi Never Sleeps"!! How ever can they?
The Popeye-biceps of Wall Street suddenly seem to have gone weak. The latest GDP drop by -6.2% is precipitous, and outright scary. Everyone, including die-hard optimists have conceded that this is the worst recession they are witnessing after the Great Depression. The only question now remaining is - is this going to be worse than the 1930s?
At this rate, you will soon see Navarthna Pubic Sector Undertakings (PUSs) in the USA - Citi, Bank of America, Freddie Mac, Fannie May, Bear Stearns, AIG, IndyMac.... at this rate, Navarathnas will make way for Sahasra ratnas .... except that the price of ratnas by then would ahve crashed, hehe!!
Stalin surely must be turning in his grave!!!

1 comment:

Karthikkaraikudy said...

Yes, the commies will have a great satisfaction at the state of affairs. Castro, Chavez will feel good. Here our Red brigade feels that they saved India from a global DISASTER. Sad state of affairs!!.
I would assume capitalism will rebound soon.
Karthik.

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