Chinese and Kuwaiti money will bail out Citibank

[w¡n9Nµ7 §£@¥€r 123]

Citigroup is putting the final touches on its second major capital-raising effort in as many months, seeking up to $14bn (€9.5bn) from Chinese, Kuwaiti and public market investors, people familiar with the negotiations say.

Under the proposal being discussed, the bulk of the money – roughly $9bn – would come from China. The Kuwait Investment Authority would contribute about $1bn, while $2bn to $4bn would be raised through a public placement of shares. The formula is still being adjusted and there could be last-minute changes, the people involved say.

The deal underscores the depth of the problems faced by big banks that suffered heavy losses in the US subprime mortgage crisis. It would follow an injection of $7.5bn into Citigroup by the Abu Dhabi Investment Authority in late November.

http://www.ft.com/cms/s/0/c6eb81e0-c083-11...?nclick_check=1

[Lance27 35]

Send money to Kuwait at about $100 a barrel and then they use it to invest in Citi-Group

[one...two...tree 2,762]

Send money to Kuwait at about $100 a barrel and then they use it to invest in Citi-Group

LOL... or with China, just a couple of months of consumer spending and they have the dough.

[w¡n9Nµ7 §£@¥€r 123]

Look at it this way. The American people get to drive SUV's and they get to play with cheap toys and much of the money they spent gets funneled back into the US so they can also move into homes they can't really afford. It's pretty cool.

[Lance27 35]

Look at it this way. The American people get to drive SUV's and they get to play with cheap toys and much of the money they spent gets funneled back into the US so they can also move into homes they can't really afford. It's pretty cool.

Hilarious

[Jaseball 0]

Killing us with economics, while slowly letting Americans dig themselves deeper and deeper into debt is the legal and far smarter tactic to lower our world influence and power.

[one...two...tree 2,762]

Look at it this way. The American people get to drive SUV's and they get to play with cheap toys and much of the money they spent gets funneled back into the US so they can also move into homes they can't really afford. It's pretty cool.

What a model of a sound economy. Let's drive our cars over a cliff now.

[w¡n9Nµ7 §£@¥€r 123]

Look at it this way. The American people get to drive SUV's and they get to play with cheap toys and much of the money they spent gets funneled back into the US so they can also move into homes they can't really afford. It's pretty cool.

What a model of a sound economy. Let's drive our cars over a cliff now.

Exactly.

Which is why the article on Moody's threatening to reduce our credit rating alarmed me. This entire economy hinges on that credit rating. It's a house of cards, built on the promise of good credit, as vouched for by extra-governmental (and international) credit rating agencies. Our rating gets reduced, you have less demand for US T-bonds, we can borrow less, we can spend less, we can do less.

[one...two...tree 2,762]

Look at it this way. The American people get to drive SUV's and they get to play with cheap toys and much of the money they spent gets funneled back into the US so they can also move into homes they can't really afford. It's pretty cool.

What a model of a sound economy. Let's drive our cars over a cliff now.

Exactly.

Which is why the article on Moody's threatening to reduce our credit rating alarmed me. This entire economy hinges on that credit rating. It's a house of cards, built on the promise of good credit, as vouched for by extra-governmental (and international) credit rating agencies. Our rating gets reduced, you have less demand for US T-bonds, we can borrow less, we can spend less, we can do less.

How to fix it? Seems the economy is at the mercy of consumer spending nowadays.