I’ve refrained from using my blog to jump into politics, as I’ve wanted to keep it focused on the things I’m passionate about, i.e. technology and programming. But there comes a time when even the calm get pushed to the edge. I arrived there this morning on this news of the bailout of Citigroup.
We, the taxpayers, have already invested $25B dollars in Citigroup. As of friday, with a share price of $3.77, the market capitalization of Citigroup was $20.7B. That is less than we gave them a month ago, meaning the company is fundamentally worthless. Yet once again, with the “too big to fail” mantra, taxpayers are stepping in with another $20B in free money, buying $7B in stock and guaranteeing $300B in garbage loans.
At what point is it enough? We poured endless money into AIG and are now doing the same with Citigroup. We are rewarding incompentence to the tune of hundreds of billions of dollars. Democrats and Republicans share equal blame for these unceasing handouts, so this is not tied to a single political party.
And who’s next? Undoubtedly, General Motors will walk away with some cash at some point, rewarding their own long-running case of stupidity. Once the spigot is open, a long line of publicly traded companies will be lining up at the trough.
So what can we do? First, let them fail. Use the money to help individual taxpayers pick up the pieces and forget about helping the uber wealthy protect their stock portfolios.
Second, expand the war on terror to include economic terrorism. We then declare all the incompetent C-level executives at these companies that caused this mess as economic terrorists and ship them to Gitmo. Indefinitely. Start with Countrywide, Citigroup, Fannie, Freddie, AIG, Wamu and Bears Stearns, then go from there.
Our country is supposed to be about “we the people” and instead has become about “we, the too big to fail”. Something must be done.