My goodness, there are so many interesting things happening in the financial world! I gave up playing video games a few years ago, but in terms of excitement and entertainment value, I may have found a replacement—just read the financial blogs and news of late.

I wish it weren’t all bad news, however, because I do feel for the poor and middle class who are losing out during this crisis. On the other hand, I have no qualms about the lost fortunes of the greedy and unwise investors who are also “suffering”. With each boom that goes bust, we are a little closer to abolishing the federal reserve and returning to sound money that will enable the poor and working class to save their wealth and to prosper.

So rumor has it that Citibank may be in trouble. They are closing the window on “outgoing capital” for their customers. Most notably, from LeMetropoleCafe:

• Here’s a story that’s flown under the radar. Citibank is in serious trouble. You probably already knew that, given the fact the banks’ been begging for billions from SWFs. But did you know that in late December Citibank quietly announced a restriction on wire transfers? The bank told customers that outgoing wire transfers from the banks accounts would be limited to just US$2k per day. Hmm.
• But wait. There’s more. Last week, under the guise of responding to a wave of fraud from automated cash machines, Citi also announced a limit on cash withdrawls from its ATMs in New York City. And you thought the money in your bank account was yours.
• There could be a perfectly reasonable explanation for all of this. But the simplest explanation is almost always the best. Citibank is in desperate need of its capital. The best way to keep your customers money is to prevent them from taking it out of the bank. It’s a kind of low-level, mild-mannered capital control.
• How has the Treasury managed the Citi crisis differently than the way the Bank of England managed Northern Rock? And what will the end result be for Citi? Stay tuned.

And this on the heels of a $15 billion write-down from Merrill-Lynch, a nearly bankrupt Countrywide Financial, and gold at $900 per ounce. And the credit-rating agency, Moody’s, has issued a warning to the US government that unless it gets its financial house in order, it will downgrade the government’s investment grade rating.

Whew! I think Goldman-Sachs and Morgan Stanley are right about a recession. If this gets you feeling “depressed”, may I suggest a remedy?