If you ever need further proof that we are in a recession, look at Citigroup. It’s losses made it to around $10 billion in the fourth quarter and though there are Asian and Middle Eastern investors eager to bail the institution out, the loss will mean a cut of thousands of jobs. They have been hit hard for the second straight quarter by defaults in the mortgage market and that means subprime loans given to customers with poor credit history.
So what is the root of all this mess? Well corporate greed and the need to make those projections look good for Wall Street. Who cares if we are loaning money to people who will have no chance of paying it back? If it makes the bottom line look good for this quarter I still get my bonus! I suspect that is the thinking of the executives who got Citigroup and the other lenders into trouble in the first place.
I wonder when common sense will finally begin to permeate the board room and the MBAs with their spins and schemes will be tossed out on their ear. Yea like that will ever happen!
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