Tuesday, August 17, 2010
I love this image. This graph depicts the price for a share of Citibank stock between 1988 and 2010. When Bill Clinton took office in January 1993, Citibank stock traded for about $4.10 per share. The lie of Clinton/Bush free market neoliberalism is that the stock market will go up forever, and the economy will grow forever. So long as the politicians remove regulations & taxes, the market will be a wealth-creating machine. On paper, Citibank's profits were big, but the profits themselves were a lie. In reality, the bank was making all its money selling worthless mortgages. Sure, in the short term, the price peaked at $53 in 2007. But in the long run, it's only worth about $4 per share.