Tuesday, January 15, 2008

Honey, I Shrunk the Economy! (And all I have to show for it are these crappy approval ratings)

Bush's reverse Midas touch strikes again*:
Citigroup announced a steep cut in its stock dividend and another big investment by foreign investors on Tuesday after taking more write-downs related to subprime securities and posting a $9.83 billion loss for the fourth quarter.

Beginning what is expected to be a grim week for financial company earnings, Citigroup said it was writing down $22.2 billion because of soured mortgage-related investments and bad loans. The bank is also cutting its dividend by 41 percent and obtaining a $12.5 billion cash infusion to strengthen its balance sheet, including big investments by its former chairman, Sanford I. Weill, and the Government of Singapore Investment Corporation. Facing rising expenses and deepening losses, Citigroup is expected to embark on a major cost-cutting campaign that could result in at least 4,000 layoffs. And thousands more could be in the offing in the coming months.

Stock market continues to plunge-- over 200 down right now for the Dow. Not a pretty picture.

*Yeah, yeah, yeah, I know it's not ALL Bush's fault. I just couldn't resist the post title.

UPDATE: Not a good day for Bush-- new low approval rating.

Couldn't happen to a nicer guy...

And the Dow ended down 277 points)