Citi Group Bailout

It finally happened. The huge U.S. Citigroup is rescued by the Government (TARP) with a $20 billion rescue package. Government guarantees for Citi's $300 billion troubled assets, securities and loans backed by commercial real estate and other assets.

Anyway, a few more trillions are needed to restore the whole economy and clean up the whole 'bleeping' mess. Sooner or later you'll 'get used' to trillions.
So how will capital markets react? What is the outlook for long term inflation? How about the unexpected deflation trend? The oil price will not stay low forever, and what are commodities going to do? And how about the Gold price, will there be a panic flight to the relative safety of a timeless asset?
And how about Politics and ('holistic') hindsight, has Bush actually fallen into Bin Laden's trap?
The more knowledge (facts emerging) the more questions!

Citi dodges disaster
The troubled bank secures an additional capital injection from the U.S. government and guarantees on troubled assets.
NEW YORK (CNNMoney.com) -- The U.S. federal government on Sunday announced a massive rescue package for Citigroup - the latest move to steady the banking giant, whose shares have plunged in the past week.
The plan has two key features:
First, the U.S. Treasury and the Federal Deposit Insurance Corporation (FDIC) will backstop some losses against more than $300 billion in troubled assets.
Second, the Treasury will make a fresh $20 billion investment in the bank. The government has already injected $25 billion into Citigroup as part of the $700 billion bailout passed by Congress in October.
In return for the latest intervention, the government will receive an additional batch of preferred shares - $20 billion for its direct investment and $7 billion as compensation for the loan guarantees. Citigroup will pay an 8% dividend rate on those shares.

Nikkei up. Europeam markets upbeat(10.30 CET) U.S. Markets expected to go down after Friday's Geithner euphoria. U.S. Pre-market indices mixed but point to higher opening.

U.S. asking help for hundreds of billions of dollars from rich Gulf states.

Still awaiting more details on the whole story... This is it, more or less the whole story from biz.yahoo, no use to repeat,just click on the link.

Government plans massive Citigroup rescue effort
WASHINGTON (AP) -- Rushing to rescue Citigroup, the government agreed to shoulder hundreds of billions of dollars in possible losses at the stricken bank and to plow a fresh $20 billion into the company.