CIT Group / Kiss the Ring

CIT Group- Soon a Goner.

I thought when CIT Group filed to become a Bank Holding company, they would be able to save themselves? Wrong!

We all thought that TARP would save everyone? Wrong! CIT group received $2.3B in TARP, not enough.

All for nothing.

Too much leverage
Too much debt
Economy stinks
CRE is worse

What is worse on the macro level is that many small business's depended on CIT to fund operations, with a possible bankruptcy all of this is off the table.

CIT is trying to get approval from the government to join TLGP program, you know the program that GS, MS, and others are using to finance their trading positions.

It really should not be a big deal to the system, as the government has already stated they "ARE NOT" "TOO BIG TO FAIL". Somebody alerted Geithner and Bernanke that CIT doesn't mean GS in Chinese. CIT made a lot of bad CRE loans, they should have made loans to Goldman Sachs, that would have saved them. There is still time, they can issue stock and or debt to GS, then the government would rescue them. God forbid if GS ever losses any money.

Speaking of Goldman.

It caught a major upgrade today.

Meredith Whitney, the analyst that originally popped Citigroups balloon has upgraded Goldman, which incredibly has ignited a bit of a bid in financials this morning. Silly rabbits.

Her main (Correct Thesis) is that the economy sucks, financials suck worse, but given Goldman Sachs is in the witness protection program, they really can do no wrong. The 4th branch of government has clipped all other competitors out of business Sammy the Bull style. Why would they not have a great quarter? They are the only ones left. John Gotti would be very proud. I am hearing that Francis Ford Coppola is working on Godfather 4, he is just waiting for Obama to kiss Blankfein's ring.