The fine looking gentleman in the middle is Saudi Prince Al-Walid bin Talal bin Abdul Aziz Al Saud. I know, you thought it was the Arabian version of Bono. I did too. He is the single largest shareholder of Citigroup. Last week he signaled that he would raise his stake in Citigroup to a 5% share. Over the weekend, the government stepped in and bailed out Citigroup to the tune of a $20 Billion cash injection plus $300 Billion in loans (this is after they gave Citigroup $25 Billion last month). That means we just gave a guy with a total worth of at least $30 Billion another $1 Billion for which he can buy more superyachts.
Check him out in this CNBC interview from Monday in front of his stable of camels and horses, looking absolutely dapper:
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3 comments:
i thought it was bono, too.
how do we get one of those superyachts for the Young Tarheels? i suppose it goes against what we stand for, huh? but it would be nice to cruise around the mediterranean once we gain our "prominence and power".
i might sound totally dumb and ridiculous by asking this... but will someone please explain where the government is getting the money to "inject" or "loan" to these bank giants? and how exactly is that better than say "injecting" that money in healthcare? i would love it if someone would break this down for me....
oops, i meant Young Heels. Young Tarheels is an entirely different blog...
Monetary policy is the answer in short. More specifics are in this blog post from Econbrowser ...
http://www.econbrowser.com/archives/2008/10/the_federal_res.html
Also,the Fed always can order more money printed and then put it into circulation. That does carry potential inflationary implications.
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