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Obama aides change their rhetoric on economy (http://news.yahoo.com/s/ap/20090315/ap_on_go_pr_wh/obama_economy - broken link)
This just shows how stupid the electorate really is. Unbelievable. Now people (sheep) will believe everything is fine with the economy? Somebody needs to hold our fearless leader responsible for his words. Oh that's tight he was all about hope and change not telling the truth.
Anyone who blames "one" individual for the economic downturn we are experiencing is immature, unknowledgable, and simply ignorant as to what has caused an economic downturn which happens naturally..
What happened "behind the scenes" is that the public debt was transferred into public stock, meaning CitiBank is no longer on the hook for payments to the government for the tens of billions in loans they received, meaning lower liability which = profits..
Whoa now let's not start bringing common sense to city data, it will ruin the forums.
As well as including bailout monies in their black columns on the balance sheet.
Debt is profit?
Its ceased to be "debt" the minute the government (i.e. Obama 2 weeks ago) moved the $36Billion "loan" into stock obligations.
When the loan moved from the "loan" category to an equity stake as a stock holder, there is no longer a $36B loan on the books, and therefore Citibank no longer needs to make loan payments, meaning it can make a profit. It changes the accounting because the loan does not need to be repaid. The side affect is that it diluted the value of each stock by 1/3rd, (note the drop in stock 2 weeks ago in 1 day).
The move makes absolutely no economic sense because the math shows that the government paid $18.00 per share on a stock selling for $1.00, unless of course the ultimate goal was to remove the "liability" of a loan..
Its all accounting and one very good reason to be against the government buying stock, to easy to manipulate the books with an unlimted budget.
Its ceased to be "debt" the minute the government (i.e. Obama 2 weeks ago) moved the $36Billion "loan" into stock obligations.
When the loan moved from the "loan" category to an equity stake as a stock holder, there is no longer a $36B loan on the books, and therefore Citibank no longer needs to make loan payments, meaning it can make a profit. It changes the accounting because the loan does not need to be repaid. The side affect is that it diluted the value of each stock by 1/3rd, (note the drop in stock 2 weeks ago in 1 day).
The move makes absolutely no economic sense because the math shows that the government paid $18.00 per share on a stock selling for $1.00, unless of course the ultimate goal was to remove the "liability" of a loan..
Its all accounting and one very good reason to be against the government buying stock, to easy to manipulate the books with an unlimted budget.
Funny thing is the reason the market went UP is because Citi suddenly posted a profit....of course it is going back down now.
I was referring to the entire market....Dow went up and everything was rosy with the news about Citi showing a 'profit'...
Now...well it is heading back down.
I subscribe to a thread on another forum tracking the Dow plunge and it is pretty amazing the straws some are grasping at...
WooHoo!!!Market is up 10 points,happy days are here again...nevermind it dropped 600 points in the two previous days.
haha, I dont care what the market does, this week I only care about C.. I have a crap load of it and watching it rise every single day.. haha.. Just hope it doesnt crash before I sell in a few months..
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