Forget Recession; Start Thinking Depression
Here's an excerpt from Citigroup Loses $9.8 Billion; Will Cut Jobs:
Citigroup announced a steep cut in its stock dividend and another big investment by foreign investors on Tuesday after taking more write-downs related to subprime securities and posting a $9.83 billion loss for the fourth quarter.
Beginning what is expected to be a grim week for financial company earnings, Citigroup said it was writing down $22.2 billion because of soured mortgage-related investments and bad loans. The bank is also cutting its dividend by 41 percent and obtaining a $12.5 billion cash infusion to strengthen its balance sheet, including big investments by its former chairman, Sanford I. Weill, and the Government of Singapore Investment Corporation.
Facing rising expenses and deepening losses, Citigroup is expected to embark on a major cost-cutting campaign that could result in at least 4,000 layoffs. And thousands more could be in the offing in the coming months.
Housing starts are the lowest since 1992.
Retail sales have dropped.
The nation's international deficit in goods and services increased to $63.1 billion in November from $57.8 billion (revised) in October, as imports increased more than exports, even as all the "experts" claim that the falling dollar would increase exports.
Unemployment is going up; gasoline cost twice as much as two years ago; food prices are up about 30 percent over one year; U.S. debt can't even be measured anymore; profits are down for retail stores, manufacturing, mining, and trade.
And the country still seems to be run by drunken frat boys with M.B.A.'s who have been running a financial con game on the whole country knowing that the Federal Reserve was designed to facilitate the elimination of small businesses. And today we have basically the same crop of corrupt and inept politician's running for office--who in this country wants to be President with a depression coming except those simply hungry to have lunch with the lobbyists?