Subprime mortgage mess hits Citibank

Is it me or does Citibank seem like a bum asking for handouts on a street corner? This is after Countrywide was purchased by Bank Of America last week for just over 4 billion dollars.

Wow what a free fall and a huge mess. The only one happy with this deal is Bank of America (eventually)(maybe) and the US government who absolutely dreaded the idea of a major lender going bankrupt and having to figure out who would service these loans after the dust settled.

Note: You still have to pay your mortgage even if your bank goes bankrupt. Sorry!

Back to Citibank, the government of Abu Dahbi gives them a cash infusion of $7.5 billion cash for convertible bonds with a 11% coupon! Seems like an act of desperation, something that scares the living crap out of me, especially with the Chinese, Kuiwati's and other foreign governments helping other banks such as Morgan Stanley and others out of this mess. Isn't this a threat to our national security?

I'm not sure, I don't work for the CIA or the White House.

Bottom Line: We are officially in a full mortgage meltdown, credit crunch, Housing mega-crash, Sub-prime crisis.