What would the Treasury’s latest Citigroup bailout look like if it were a bailout of you, a strapped homeowner, instead of Citigroup?
Tim Geithner would buy your $100,000 house for $200,000 with your neighbours’ money.*
(Yes, you’d have paid a lot more than $200,000 for it, but still…you’d be loving Tim).
*Basically what the govt did this morning was agree to buy Citigroup stock at $3.25 a share that is trading in the public market for $1.60. Thus, it is paying 2X what the stock is worth.
If the Treasury did that for you, the homeowner, they’d be paying 2X whatever you could get for your house in today’s market.
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