Typical Monday....Another Bailout

Over the weekend the U.S. Government again opened its hand to another failing financial institution otherwise known as Citigroup. It received a $20 billion capital injection (on top of the $25 billion it has already received) plus a collaboration among the Treasury Department, Federal Reserve and Federal Insurance Deposit Corporation to absorb $306 billion in "troubled assets", although Citi is responsible for the first $29 billion in losses and possibly more.

On another note GM said that the board is not opposed to considering Chapter 11 bankruptcy to help itself through the global credit crisis. Congress rejected the auto makers "begging" for at least $25 billion to stay afloat. Representatives asked that the "Big Three" draft a detailed "layout" of their operating infrastructure, innovations and commitment to fuel efficient auto's before any money would be given. The auto makers have until December 2nd to provide the draft before Congress will reconvene on the matter. I am on record has stating that the auto industry is simply to big to let it fail (1.25 million would lose their jobs almost immediately) however, to think that these executives can fly to Washington on Lear Jets and simply get a "hand-out" is almost insulting to the American Taxpayer! These companies are very poorly run as they simply do a lot of things that are both inefficient, senseless (i.e. paying someone working a manufacturing line over $80K a year), and irrational.

Let's see how all of this mess shakes out. The more this drags on and the more I research about it the more I am convinced that 2009 will not be a very good year for the economy and real estate industry for that matter.

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