Wednesday, July 15, 2009

CIT - I'm OK With This

It looks like the government is going to let commercial lender CIT fail. Of course the dust needs to settle but this seems just to me.

The argument in favor of more bailout funds for CIT was clearly that the companies that CIT lends to could go under and millions of jobs - CIT's customers' employees - could be lost.

I'm willing to bet that the last lenders standing are strong enough and broad enough to step in and pick up the slack.

We'll see how the market takes this.

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