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Take it Citigroup pretty darn near close to NASA will face and not according to Citi CEO Vikram Pandit saying this today.
Of course the government all of the significant amount of common stock investment announced but -- commitment we have had.
To every shareholder.
Which is to provide an -- -- return.
As we get through this cycle remains unchanged and in many ways for those people out of concern about -- they -- This announcement should put those concerns to rest.
Actually because that was a run on sentence that Randy equivalent of eight paragraphs no mr.
Pandit it did not.
Anyway bottom part that is still concerned about that saying that the government needs to fully nationalize these banks if we're really serious about saving the economy -- -- is we're.
We're closed at that -- is just one step over the line.
I'm not sure how close we are and I really would like to be wrong very much -- me -- I really hope we don't have to nationalize the banking system.
But we're on stimulus package to which this president rather the stimulus package from our prior president.
If we gets the point we have to go to stimulus package three.
We should just skip the nonsense and I'm afraid that the nationalization is going to be all right now even some Republicans were opened to the idea and it's a -- is saying.
I think it was inside -- want to be -- it.
A short term nationalization for a little wild can you do that he'd be a little bit pregnant with this stuff.
Actually we have that system in place now are FDIC program -- already nationalized.
Really nationalized about thirteen banks so four and 2009 alone then they take him over.
Break them up and parts get them as healthy as possible and then spin them off to some of the carrier is a procedure that -- but it's -- bankruptcy.
No it's called FDIC takeover and is it a banker -- -- receivers have proceeded to yes and all of those somehow recover to some extent what we don't call it and now we don't do what what.
And the reason is it's it's I think it's more a function of scale.
Now that we're talking about some very large institutions are supposed to banks that most of us haven't heard of it's a scale differential but the infrastructure is there it would it would just take -- this -- dumb question I think this is some -- was here because she -- on the but.
It there and -- -- -- pick on -- yes you can because I know you're very Smart but our.
It what what would be on it if you just let -- go right if you know of is too big to fail -- these days too many to ignore but.
It's not as -- others wouldn't be trying to buy.
City Kennedy's right and it will what what what I'm excited -- -- -- I I think it would be calamitous.
Because for on on several scales one.
He would make Lehman look like a blip.
Because of the provision of the differential right now the readers so much lack of confidence what we need as an economy this -- what the difference on you know has been a confidence builder -- exactly.
Remember high school algebra where the teacher noise -- that you don't -- not one bit.
Well the teacher used to make you show your work you can -- there are some people look at look at -- -- -- -- -- guy texts and it could have accidentally Aziz.
You don't want to rescinding any grades so let's let's let's not go there the appointment.
But we have to happen is right now our equation has to and with the answer of how to get the banks -- stuffed -- and providing money and capital.
To let reasonable borrowers that's not happening if this stimulus package does that god bless you don't have another step it up to the plate intent.
They need capital to do in order to have capital -- -- -- -- -- -- -- -- as a banks in this country in the top tier one -- second win -- I think most of them were sucking wind with problem loans by the guy is -- Muslim or not.
Now I have to disagree with anything accidentally I -- should've checked my facts as well.
Very Smart but but now -- you're arguing that you let a big guys folder or stagger.
Everything stagger it's I would say nationalized after that.
Putting the infrastructure that FBI theory has in place for the smaller.
Bank what would be different in the nationalized work -- personal nationalization.
I wanted to cure folks I don't -- some of the socialist because -- I couldn't be farther from that.
But what would happen is that the these banks would then all of a sudden -- and a lenders.
Like a city group -- or the risk of people are worried about what we're Citigroup all of a sudden being backed by the full faith and credit of the United States.
Any take over the -- and nationalization that would happen.
Now the other banks are -- competitive disadvantage true.
Because I don't -- go to city group for some kind of resources that that -- -- resource is backed by the full faith and credit of the United States.
So now there I've set the bar higher for these banks have to do right now these banks are just trying to protect their own skin.
They're not working to stimulate the economy but and all of this money that they're using to step by Citigroup and the like and Bank of America is just trying to save those corporations.
That's a wonderful objective but it's not enough to stimulate the economy.
This is -- -- green is people today.
But but I don't know you have faith and we'll see well hopefully -- it's also a temporary measure it's a full time long term measure then he chuck Heston.
-- -- thank you very.
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