By Orion Daley
To US Taxpayers:
Fox news stated for a $260+ Billion bailout of CitiGroup, each tax payer will incur about an additional $1,000 in tax. Considering Bloomberg News reported about $7.7 Trillion so far in total bailout,your $1,000 for CitiGroup represents only a small fraction of what you are going to owe!
But this forecast also does not include the $10 Trillion of existing national debt which is also backed by the full faith and credit that our government has in you , the US taxpayer - so get out your calculator if you really want to figure what you are in for !
But lets just consider CitiGroup for the moment. When given the argument 'Too Big to Fail' consider that once upon a time there was a 'Ma Bell'. This was the only phone company. It was also "too big to fail. In other words, if it did, there would have been no phone service. Consider that this would have been an incredible risk!
But in 1983 it was broken up into about seven regional bell operating companies (RBOC's) which operated independently of each other. Further, in 1983, other players were allowed to enter the market to even compete against the RBOC's, such as Sprint etc.
Since the mid 90s, CitiGroup grew from being a commercial bank to acquiring many investment firms and other banks. These included Solomon Brothers, and Smith Barney Shearson.
Prior to the Mid 90's it was against the law to have such mergers and acquisitions, but the argument was given that commercial banking revenue could supply the capital for fueling institutional banking.
Institutional banks make their money by taking on leveraged risks. This might also explain why banks like CitiBank imposed even more service charges to the commercial customers: to fuel market risks in the name of profits ?
Today a Saudi Prince, who already owns a controlling interest of 15% of CitiGroup is buying more of it. This is while showing 52,000 employees the door who are being fired. This is while you are paying $1,000 more in taxes just so the Saudi Prince can buy more of what is too 'big to fail'. This is while that Saudi Prince has no issue about jacking up your price per gallon of gas to $4+ bucks if given the chance.
If we rolled back to the mid 90's, CitiGroup would not be CitiGroup and would not then be 'too big to fail', and the market, like in the days of the Ma Bell break up would actually have many more players; far less people being fired, and while not having Saudi Princes dominate our banking industry at US taxpayer cost –
You might want to forward this to your Congressional Representatives, and ask - what exactly is actually going on . Why is Congress continuing to further this incredible risk in our economy while furthering foreign ownership, and while displacing employees at US tax payer cost. In other words, why are they deferring in their responsibilities and just dumping this cost on us. Are we their mules of burden or the people that they represent. Or simply, why have they not just studied history ?
In a speech I wrote for some folks in Penn last January, I stated: "When we speak of 'Change' today, we must speak in terms of Restoring our Nation. It is not a matter of Big Government for 300 Million people, or a small one for 9 colonies but a responsible government in either case. It must be cost effective in order to be responsible in serving the people. http://balancedparty.org/?Letters/Restore_Our_Nation_Detail.html "
The question I have for you is, 'should your Congressional Representatives also be shown the door?'
Orion Karl Daley
Presidential Candidate for 2012
For the Strategic Future of our nation
Author - The New Deal ISBN: 1419670948
Balanced Party http://balancedparty.org
New York, NY, USA