Citi's bailout

First, just so we are clear on my stand. I am against any kind of bailout.

Next, since I am a nobody and can't stop a bailout, then, if there were to be a bailout, then I believe it should have very strict terms and conditions.

With that being said, I am ok with the Citi bailout. There were terms and conditions in there to somewhat prevent them from mis-using the money. Obviously it's never going to be foolproof, but, it is better than not having any conditions and they continue whatever they were doing.

One point I thought was very interesting. The bailout now stipulated that dividends will be no higher than ONE PENNY. Citi stock price has almost doubled since this announcement, so, obviously, it is not the long term investor seeking dividends that are controlling the market right now.

Why Citi and not the automakers?

(1) Maybe because I am biased?

(2) Being an ex-employee of Citi, I can say that, while the automakers didn't keep up with the times (Warren Buffet says they need a new business model), Citi was a front runner as far as keeping up with the times. In fact, they spent a lot more on technology for the customers than they did for staff.

(2) I have said this before. While others were building cars with better mileage, less gas consumption, alternatives to gas, better performing cars, the american automakers were... doing the same thing they were doing 20 years ago.

(3) The unions. They are the anchors that dragged the automaking industry down. Yes, they were strong. Yes, they got their way. But, their strengths have dragged the automaking industry all the way to where they are right now. Do away with these unions. Same for the airline industry. They are not doing the entire industry any good.