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44 Comments
- VitriolAndAngst, on 11/02/2009, -0/+24Too big to fail.
Gets big government bucks.
Fails anyway.
Profit! - borez, on 11/02/2009, -1/+24For those that don't understand factoring, it's borrowing against your invoices. You sell your invoices to a third party for a discount, they pay you straight away and then collect the money themselves. It's one of the main go to options available for small to medium businesses when they're having cash flow problems and/or creditors are taking too long to settle up. For a lot of businesses, it a necessary lifeline.
CIT is/was Americas biggest factoring enterprise.
You take factoring out of the equation and a lot of businesses are going to go under. Really not a good look .
And they keep telling us the economy is recovering.... who the ***** are they trying to kid. - rhansell10, on 11/02/2009, -0/+14Remember, CIT is not CitiBank. I think people will still short their C shares, however.
- charlietuna, on 11/02/2009, -3/+15I am convinced the 2008 bailout was not designed to save any assets, instead it was designed to slow down the rate of collapse (at enormous taxpayer expense). This was intended to avert an even more catastrophic wave of panicked withdrawals and a total collapse of this pyramid scheme / shell game we call modern Capitalism.
CIT was probably ready to fold a year ago. - borez, on 11/02/2009, -1/+10Actually I'm going to add to this.
CIT filling for bankruptcy is a major indication of the state of the economy.
Why? Well when you think about it businesses are borrowing from CIT to get themselves out of cash flow problems, but... obviously people aren't making good on those invoices to CIT, maybe because they've gone bankrupt themselves or maybe because nobody's making good on invoices to those companies. Effectively it's giving CIT cash flow problems of it's own. It's a huge house of cards and if CIT is filling for bankruptcy... it's beginning to fall down.
This, as I said before, is most definitely NOT a good look.
Sorry to be the bearer of bad news but... those greedy ***** bankers have left your country in some really deep *****. - heliumflash, on 11/02/2009, -1/+7modern capitalism = corporatism yes?
- ScoobyNew, on 11/02/2009, -0/+5I had a home mortgage with CIT, I was behind by 3 months. I was in discussion with a representative for about one week. My wife was out of work due to pregnancy and I made the offer of direct depositing my entire paycheck to CIT upon my wife's return to work. Which seemed to please the rep but....
Repeated phone calls and emails to them were completely ignored after that. Five weeks of trying to contact them with zero response. We decided that if they don't want to talk to us, we don't want to pay them. Sorry everyone, guess I'm the cause of all this. - Barackalypse, on 11/02/2009, -0/+4Ask China, they lent it to us.
- 11oops, on 11/02/2009, -3/+7Yeah, because this happened overnight, right?
- ThantiK, on 11/02/2009, -1/+5CIT ONE OF THE LARGEST...but you know...it's not as large as the other ones...
That's like saying my dick is one of the largest...
But not larger than anyone elses. - Surgeon62, on 11/02/2009, -1/+5Too big to fail.
Gets big government bucks.
Fails anyway.
Profit!
+Executive Bonuses - endlessirony, on 11/02/2009, -0/+4There does not seem to be any relation aside from the three letters in the name.
- VitriolAndAngst, on 11/02/2009, -0/+4I think you've been paying attention.
- osteor10, on 11/02/2009, -0/+3sounds like a perfect evil headquarters.
- jfreeman, on 11/02/2009, -0/+3All of us saying these banks should have filed for bankruptcy /before/ fleecing taxpayers were called loons, and yet we were right in the end. Too bad those in power are only interested in helping out their friends instead of their constituents.
- sonnybobiche, on 11/02/2009, -0/+3@11oops: My issue is not that it's taking too long. I know Obama has a hard job. My issue is that he's lying when he says things like "the economy is already recovering" because it's not. Nobody in their right mind would actually trust the numbers coming out of the white house right now; everyone knows they've been fudged. When CBS or others actually call Obama on it, he says it's "calculator abuse."
- TnTBass, on 11/02/2009, -0/+3".... who the ***** are they trying to kid."
You, me, and everyone else. See, because the economy is so heavily driven by consumer spending, the more they can reassure everyone that the economy has recovered, the more likely they will be to go out and spend, which in turns boosts the economy. I've been hearing the "economy is fine" messages since the start of the recession - all in an effort to keep us spending our money. - m0llusk, on 11/02/2009, -1/+4I can't wait to see what happens with their black wedge shaped building that overlooks Dulles airport.
- crcurran, on 11/02/2009, -0/+3A little off topic. With regards to recovery, I find it very interesting that people who support or oppose and the Stimulus package have no idea what it is in detail and how long it will take for the money to be spent.
There are many places you can look (and it's always good to check many to make sure you are not being lied to)
Here is one source: http://en.wikipedia.org/wiki/American_Recovery_and ... - SemiSarcastic, on 11/02/2009, -0/+2Sooo...Who wants some ice cream?
- Ddraig, on 11/02/2009, -0/+2Can we have our 2.3 Billion Back?
- manicleek, on 11/02/2009, -2/+4Just because the economy has just started recovering, doesn't make up for the problems businesses got into over the last 24 months.
It doesn't happen like "economy is recovering BOOM everyone's OK" - endlessirony, on 11/02/2009, -2/+4They were bailed out last year you know before Obama took office, TARP was approved under the Bush administration. You don't even need to look it up it's in the article.
"CIT received $2.3 billion in government aid last year, a bailout that came in the form of preferred stock." - Caergrim, on 11/02/2009, -0/+2ha, his private party. I, too, liken my genitals to a private party in my pants.
- VitriolAndAngst, on 11/02/2009, -0/+2If we really want CHANGE in this country, maybe we should all be making purchases and transactions with actual CHANGE.
The loophole the FED uses to get congress out of the money supply, is that Congress mints coins. And that's ALL that the US government does; mints the coins -- but we pay about 4% to the bankster cabal that is the Fed to use our own money.
I'm really wondering why they bother with the charade anymore -- they should just print however much money the wealthy want and just give it to them. It would save us from having to invade countries, divert funds, and this song and dance with giving money to AIG so that they can hand it all to Goldman. Cut out the middle man.
But let as poor suckers who work for a living have our very own currency, so we can ignore this fantasy economy wherein people make mega bucks for nothing. The super rich can keep score by seeing how much of their own monopoly money they can grab, and leave our economy out of it. - inactive, on 11/02/2009, -0/+2Another corp who took "bailout" money files for Chapter 11...
Add Cit to the list along with Chrysler & GM - allisonV12, on 11/02/2009, -1/+3So its basically an upscale version of what you see in strip-malls,the poor person's Pay-Day check cashing.
- rhansell10, on 11/02/2009, -1/+3The Invisible Hand will find a company that will take its place. Should this never occur, then CIT should never have been in business in the first place.
- sgerwel1985, on 11/02/2009, -1/+3Just more proof that the Bush bailouts did no good (and yes all you obamabots... obama voted FOR them too) have only slowed down what should have happened in the first place. Let these companies fail, possibly then they will restructure and a better business model will be formed and be HOPEFULLYbetter (healthier) company.
So maybe now we can see, how well does our system REALLY work? So please, elected officials, stay the F out of this one... - 11oops, on 11/03/2009, -0/+1He's lying when he says "the economy is already recovering?" Where are your numbers to contradict that claim? What sources do you have that show the economy isn't recovering? CIT filing for bankruptcy is not an indicator of the economy as a whole continuing to flounder.
And my comment wasn't that Obama's 'change' was taking to long, but rather that CIT has been making poor investments and decisions for much longer than Obama has been in office. CIT's failings as a business didn't happen overnight, and they certainly didn't happen post-Bush. The decisions they made in the past decade caused irreversible damage that eventually forced them to file for this bankruptcy. The changes Obama put into place had little to do with fixing every broken corporation that made bad decisions, but rather to help insure the same mistakes aren't allowed to occur in the future. - borez, on 11/02/2009, -1/+2It won't just affect them... it'll kill them.
- VitriolAndAngst, on 11/02/2009, -0/+1So what are you saying?
About the bank -- not your private party. - Caergrim, on 11/02/2009, -1/+2And the biggest problem is that this is a bandaid on a festering wound. It is not going to get better. They are just covering the problem up.
- VitriolAndAngst, on 11/02/2009, -0/+1TMI followed by TMI. *sigh*
We have had a total subtlety FAIL on this thread. I blame my self for trying to be hands on and not grasping the how truly twisted Diggers can be.
/LOL - richmomz, on 11/02/2009, -0/+1Another one bites the dust...
- Numbski, on 11/02/2009, -1/+2What relationship do they have to Citi?
- bmatherlyjr, on 11/02/2009, -3/+3I still fine irony in companies that file for bankruptcy protection, with the exact same entity that needs the protection themselves.
- borez, on 11/02/2009, -1/+1It's completely pointless throwing money at CIT, if nobody's making good on the invoices CIT has bought then it's caught between a rock and a hard place, throwing money at them is just delaying the inevitable.
- inactive, on 11/02/2009, -2/+2Very sad story. CIT's absence will affect the poor and the under-banked. Don't know if there's any other institution taking its place.
- borez, on 11/02/2009, -1/+1Yep, kind of.
- allisonV12, on 11/02/2009, -1/+1Maybe killing the small business would benefit the mega corporations...exactly what they want,shifting the now unemployed business owner into the big box stores as assistant manager.
Capitalist restructuring.
With obscene rents and tax, the small business is probably doomed in the long run anyway. - sonnybobiche, on 11/02/2009, -12/+10But I thought the economy was fixed! I thought we would have transparency and everything would be changed for the better!
Actually, I never thought that for a second. - Trey9128, on 11/02/2009, -14/+9Is it too late to throw a few billion more dollars their way?
Thanks, Barack and Nancy. Brilliant macroeconomic policy. - TherealObadiah, on 11/02/2009, -20/+10Hey, here's an idea. Maybe we should give them a few MORE billion dollars of taxpayer (MY) money! Yeah, that ought to help. Can we get Obama and Pelosi on that right away?? Better hurry though, pretty soon there won't be any jobs left for Obama to tax!
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