A Downward Spiral as CIT Files for Bankruptcy.

The implications for the Taxpayer run along the lines that they aren’t going to get their money back from CIT. But there certainly are more implications. We know that investments are insured against failure, but when the negotiations to prevent failure fail themselves; one has to wonder if there are issues in that failure results in a positive for some investors while removing any benefit from a common shareholder. Read about the disclosure here. Too big to fail does not mean they won’t fail anyway. Now, what will the repercussions be? We’ll have to wait and see. And as my professors like to say; “These are certainly interesting times, so pay attention.”