CIT Bankrupcy Costs US taxpayers another $2.3bn
CIT group, America’s leading specialist lender to small business, filed for Chapter 11 late last night in the fifth biggest bankruptcy in US history.
The collapse of the 101-year-old Utah-based lender, which trails behind only those of Lehman Brothers, Washington Mutual, Worldcom and General Motors in size, will leave US taxpayers with a $2.3 billion (£1.4 billion) bill.
And so it begins,….. Huh? begins, I dont think so. This is the same old tricks by the same old government and the people dont even seem to care. It is a shame really.
The amount of US Businesses At Risk Over the CIT saga is phenominal. The real intresting thing is that we are at a critical point. We were expecting the fall of the commercial real estate would come very quickly in 2010 but as most our subscribers know the market is starting to come down and in sync with this bad data starting to come out about such companies such as CIT.
COINCIDENCE? I don’t think so. As we discuss further in OUR NEWSLETTER!
Alot of people have been talking about the commercial real estate collapse being a significant problem, but here is the first evidence today that they are going to use tax payers dollar to AGAIN get rid of the problems that they cant take care of. Just charming isn’t it.
This is not only a significant problem. It is going to make the residential foreclosure problem (which is still occurring) a walk in the park compared to the things we could see down the pipe.
It’s only Tuesday this week, and it already feels like the leaky boat is filling up with water and there is not enough people on board to bail the water.
