When the Citi falls . . .

OK, so I was expecting Citigroup to fall before the holidays started (and I blogged a bit before about their creepy Primerica unit) and since the new year, they seem to be well on their way to collapse. Perhaps the "good bank/bad bank" split will allow a shell of their former selves to soldier on intact, but I have my doubts about even that. I still feel it's more likely for Citi to end up a pile of financial rubble that cannot be salvaged, only canibalized.

When Citi falls, though, it's going to take large chunks of the economy down with it. Huge numbers of consumers will be withdrawing funds through the FDIC, further raising the national debt. And then perhaps Bank of America will fall (though I think they have a better chance of making it than Citi) . . . If they both fall, Depression will likely soon follow . . .

Given the amount of government money that's been handed to Citi so far, it will be a shame to watch it all wash down the tubes . . . Again, I hope to be wrong . . .