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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (168451)	12/3/2008 8:06:50 AM
From: butschi2	Read Replies (6) \| Respond to of 306849

I would call a mere $34 bio bail out for the big three modest and cheap compared to the Citi bailout. The Citi bailout for the $300 billion quarantee alone should be far more expensive than $34 billion for the big three. The $300 billion will be the most toxic Level 3 assets until now accounted for by phantasy. I would expect the dirtist dirt they have not written down until now or they expect to explode as C&D loans, CRE or LBO in the near future. Coupled with $45 billion in new capital, i cant understand this bickering from congress, but perhaps this are not "their" favorite people/companies. And Citi will come back for more, in no way they can sustain there derivatives and their $2 trillion balance sheet + off balance sheet with this small bailout with an economy hitting the wall. We are just at the beginning of a deep recession/depression and "normal" assets will get hit heavily until it gets better and most companies will hit the wall at the end of a recession and therefore the pain will increase fast. Citi will be nationlized before it gets better in a few years. The spead of the ecomomy contracting starting with Lehman in September is nearly unparalled perhaps even faster than in the Depression 1930. JPM and Bac will be perhaps first in line for their second bailout, before Citi gets its third bailout.