One Nation Under Citigroup

Normally I try to refrain from making a lot of political entries in this blog. Yes, many of the times where I point out things which are wrong with various industries could be considered political, but they are really meant to point out a problem and a solution. In this particular instance, I don’t have much of a solution, other than nationalization, and we’ve all seen just how well the government has run any enterprise it ever tried to operate.

Recently we had an election which had the overwhelming theme of “Change”. Now we seem to all be victims of the ancient Chinese curse “Be careful what you wish for.” Granted, the policies of the Clinton administration painted us into this corner. We had the Internet Ponzi scam which resulted in the DOT-BOMB flame out. We had the restraints taken off of the mortgage industry, which will ultimately be found responsible for the mortgage melt down. The short term high returns resulting from both of those policies caused other companies to try coming up with ways to manufacture such returns, or even better returns. Anybody disputing that statement obviously hasn’t watched the news stories about Bernie Madoff or Allen Standford.

Just prior to the election we had an administration desperately trying to put a Band-aid on the financial industry to avoid a complete collapse during the election. There was a justifiable fear that voters would be so busy trying to get their money out of the few remaining banks on election day they wouldn’t take time to vote. The old adage “ Haste Makes Waste” could have never been truer. In a blind panic they created TARP and stories of its abuse seem rather far reaching.

Now, the tax payer is being asked to bend over and take it again by Citigroup. They want us to convert the roughly $45 billion we sunk into prefered stock into a 40% stake of common stock. This is quite possibly the most blatant abuse we have seen yet. Were the prefered stock to be converted at current market value it would end up being 80% of the company, not 40%. As a country, we have only two options:

  1. Liquidate Citigroup in its entirety.

  2. Nationalize Citigroup and pull its banking business back to mortgage, savings, and retirement accounts.

Either way, we cannot allow even the tiniest shred of the existing management structure to remain in place. Everyone from the board of directors down to the most junior of Vice Presidents must be canned with only two weeks severance and their Cobra coverage.

We had an election for change, but it looks like the only change we got was changing the constitution from “one nation, under Halliburton” to “one nation under Citigroup”.

 

Roland Hughes started his IT career in the early 1980s. He quickly became a consultant and president of Logikal Solutions, a software consulting firm specializing in OpenVMS application and C++/Qt touchscreen/embedded Linux development. Early in his career he became involved in what is now called cross platform development. Given the dearth of useful books on the subject he ventured into the world of professional author in 1995 writing the first of the "Zinc It!" book series for John Gordon Burke Publisher, Inc. A decade later he released a massive (nearly 800 pages) tome "The Minimum You Need to Know to Be an OpenVMS Application Developer" which tried to encapsulate the essential skills gained over what was nearly a 20 year career at that point. From there "The Minimum You Need to Know" book series was born. Three years later he wrote his first novel "Infinite Exposure" which got much notice from people involved in the banking and financial security worlds. Some of the attacks predicted in that book have since come to pass. While it was not originally intended to be a trilogy, it became the first book of "The Earth That Was" trilogy: Infinite Exposure Lesedi - The Greatest Lie Ever Told John Smith - Last Known Survivor of the Microsoft Wars When he is not consulting Roland Hughes posts about technology and sometimes politics on his blog. He also has regularly scheduled Sunday posts appearing on the Interesting Authors blog.