Tuesday, March 10, 2009

Citigroup

So Citigroup is actually very profitable so far this year. That is great, but how and why? How can a company go from doing well, to a penny stock and almost bankrupt, to being profitable in such a short amount of time? Not just breaking even, or a few million over operating costs, but $8 billion dollars profit in 2 months of a year. Those are staggering numbers and a turn around.

Also remember that the government took an equity stake in the company recently, so from an investment standpoint and as a taxpayer and a owner of Citigroup through the governments purchasing of this stock using my money, what is the return of the investment and when do we get to pull out the initial capital to "take the money off the table" and return it to the taxpayer?

I think that there are many levels to the bailout scheme that is being battered around Washington DC and Wall Street, and that "We the People" are not being told every step along the way. If we are told it then we are getting the sugar coating and not whole M & M.

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