Monday, November 24, 2008

Paul Krugman: Citigroup Bailout Outrageous

Paul Krugman notes this morning that a Citigroup bailout, under the circumstances, may have been worthwhile, but this bailout is outrageous: "a lousy deal for the taxpayers, no accountability for management, and just to make things perfect, quite possibly inadequate, so that Citi will be back for more. Amazing how much damage the lame ducks can do in the time remaining."

I would like to point out that this mismanaged company is worth $20.5 billion. It's already received $25 billion from the TARP rescue plan, and now Treasury is poised to inject another $20 billion, on top of generous asset guarantees. Yet for some reason Paulson is unwilling to help the auto industry? Now I agree with the Democrats that the Big Three needed to come back with a plan on how they are going to use this loan from the government, but now

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