They Should Have Let Citi Fail!

Posted on | November 27, 2008 | 3 Comments

Yet again, the US Treasury is bailing out a financial giant.  This time it is Citigroup.  We continue to ask, why does our government bail out companies that have made horrible financial decisions?  How many times are we going to do this and which companies get this luxury? I often relate this to a family situation when describing it to my peers.

Picture this; your 28 year old brother has spent his entire savings on video games and comic books and does not have the money to get by because he was just laid off.  Your parents decide that he can live with them and they will support him until he gets back on his feet.  Your 32 year old sister hears this and she too is in financial trouble.  She is capable of making enough money to get by, but after learning about her brother, she spends all her money on clothes, purses and shoes.  She too goes to your parents who in turn decide to “bail” her out.  At this point, you are wondering what the incentive is to earn your living if mommy and daddy are footing the bill for your siblings.  This is exactly what the United States government is doing with the financial industry.  Instead of letting this institutes go bankrupt, they are propping them up and supporting a company that should be taught a lesson.

Citi is currently spending $400 million for a 20 year contract to sponsor the New York Mets new stadium.  They are also paying several million dollars for the rights to the Citi Rose Bowl and many other college athletic sponsorships.  Guess who gets to help pay for these?  That is right; you and I!  Our tax dollars will pay for these sponsorships as Citi cannot do it.  Mommy and daddy have run out of money to support your siblings, so now they are asking YOU to help.  Will you?

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