Monday, November 24, 2008


The government is stepping in again with the next phase in the ongoing, not-quite-bailout of Citigroup.

Banks in trouble are a strange animal. Nobody thinks their money is unsafe once it gets into a bank, which is a good thing or else the runs on banks would be faster and more furious. It makes the required bailout steps like the one we are seeing today somewhat eerie, though.

I have been paying very close attention and I'm not sure what got so much worse over the last 2 months for Citi. If nobody is pinpointing an inflection point for Citi, should we assume that every bank needs similar help? Banks not named Citigroup are very quiet today.

If anyone else has some bad news to sneak out, today would be a good day to do it.

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