Yahoo news (sorry about that) quotes some Obama advisers as saying they aren’t going to wait for the inauguration to engage the economic problems. This sounds to me like the first mistake he has made. A cardinal rule of those in waiting is not to engage until you can control events. The Obama team isn’t […]

That didn’t take long. Here is a WSJ article that reports the government is indeed discussing the purchase of some of Citi’s toxic assets. While the discussions remain fluid and might not result in an agreement, talks were progressing Sunday toward creation of what would essentially be a “bad bank.” That structure would help Citigroup […]

I haven’t been able to confirm this but Calculated Risk is reporting that the government is set to buy up to $100 billion of assets from Citi to keep it afloat. Treat this report with caution as CNBC, the source for Calculated Risk, has been off base before. Tom Lindmark

Senator Charles Schumer said today that the Obama recovery plan announced on Saturday would likely run into the range of $500 billion to $700 billion. Schumer said, “To make this work you need five per cent of GDP.” It’s a little like a new New Deal, but you do it before the Depression occurs, not […]

Last night I wrote a post about Obama’s plan for economic recovery. It’s heavy on spending and light on tax cuts. This morning there’s a little more information that highlights the differing views as to how the problem should be approached. One involves the British solution and the other points out a growing divide between […]

There should be some news on Citigroup tomorrow. Any bets? I’m of the opinion that they announce discussions about major spin offs and try to tough it through. Here’s a link to a Telegraph article musing about the outcome. Regardless, of what happens tomorrow, unless the market eases up on them they’re toast. My bet […]