The US government has announced a rescue plan for the Citigroup banking giant after its shares plunged by more than 60% last week.
The US treasury department is to invest $20bn (£13.4bn) in return for preferred shares in Citigroup.
The treasury and the Federal Deposit Insurance Corp will also guarantee up to $306bn (£205bn) of risky loans and securities on Citigroup’s books.
(Source: BBC News)
The USA, that proselytising bastion of the “free market,” is once again using public money to bail out the failure of capitalists at Citigroup.
Thirteen point four thousand million pounds are going into the hole created by the piratical adventurism of the Citigroup management. Money that could have been spent on welfare, housing, education, health.
But spending money on essential public services is, of course, against The American Way. That would be foolish, that would be socialism!
Far better to spend trillions of dollars on an illegal war and then pour billions more into businesses run by inept fatcats.
For the US ruling class, essential infrastructure isn’t worth investing in. War and bonuses for reckless management, now those are things worthy of support.
Oh, and if you think $20bn is a crapload of money, don’t worry, this follows $25bn of public money thrown at the bank last month.
Ordinary people all around the world must be thinking, “Surely it would be cheaper for us if these businesses had been nationalised all along?”