CIT + FED = BK

A few months back, as part of a Tin Foil Hat Production, I mentioned CIT’s desperate need for funds and the Fed’s decision not to bail them out. Why is this noteworthy? After all, I don’t believe the Fed should bail anybody out.  I cheer wildly to see Ford record surprising profits while competing against the Frankenstein creation that is GM, just as I quietly root for GM’s justified demise.  But here we are, with CIT declaring bankruptcy and the hypocrisy is just too much.   Apparently, a company focused on financing small business (70% of the entire factoring business!) is not worth a bail out from the administration that claims to look for ways to spur Small Business.  Color me cynical, but I think CIT’s main problem was a lack of Goldman-Sach’s alumni on its board…

Filed under: "TIN FOIL HAT" Productions, POLITICAL & ECONOMIC FOLLY , CIT, Goldman Sachs