February 24, 2009
Quote of the Day
Fox Butterfield, call your office:
Despite the announcement Monday that the federal government would do even more to help recapitalize financial institutions, the Dow Jones Industrial Average dropped another 250 points.
Despite -- I'm not sure that word means what you think it means...
Posted by John Kranz at February 24, 2009 2:46 PM
Questioning the use of "despite" is correct. Shareholders want capitalization, just not in any form and not at any price.
The feds are talking about another $20 billion for Citi, and the feds already want to convert their preferred stock to common stock. This, of course, dilutes the value of the common stock, which is why existing common stock shareholders are fleeing. And rightly so.
I've warned from the onset that nationalization is coming. Hardly anybody wanted to believe me.
Questioning the use of "despite" is correct. Shareholders want capitalization, just not in any form and not at any price.
The feds are talking about another $20 billion for Citi, and the feds already want to convert their preferred stock to common stock. This, of course, dilutes the value of the common stock, which is why existing common stock shareholders are fleeing. And rightly so.
I've warned from the onset that nationalization is coming. Hardly anybody wanted to believe me.
Posted by: Perry Eidelbus at February 25, 2009 11:18 AM | What do you think? [1]