Honestly if I were a taxpayer in the U.S. economy, I would not protect me using my money. During the busy weekend that has just ended, three institutions went bankrupt: the PFF Bank & Trust, Pomona California, the Community Bank of Loganville, in the state of Georgia and the savings Downey Savings & Loan, also California, which has assets of U.S. $ 12,800 million. The latter represented a significant blow for the U.S. More info: Nouriel Roubini. financial system.

Why is the U.S. government to bail out Citigroup? The first thing to say is that Citibank had not opened yesterday but for the financial assistance from the U.S. government. For the U.S. government as the key to get the economy recovers, it is to avoid new episodes of crisis in the financial system size. The fall of Citigroup would have meant the collapse of the financial system and the deepening crisis on the real economy, which would have also extended the duration of the economic downturn.

This is due not only to the size that has the authority but also the multiplicity of interconnections that has the same within the financial system. What happened with Citigroup has raised fears about the possibility that other large institutions are going through similar situations. That is why to create calm in the markets, President George Bush announced its readiness to implement similar measures to safeguard the U.S. financial system. Not that the bailout to ensure that the economic prospects of the United States look better from the same, but avoids a major problem.