Dave Ramsey, the famous personal finance guru, is on FIRE about Citi and Bank of America. He’s so upset about a deal for the government to buy a stake in Citi – and the possibility that Bank of America could be up next — that he’s called for a boycott of both institutions. (Hat tip for this news: Financial Methods.)

But while Ramsey is upset about the quasi-nationalization of some banks that need some help, my beef with Citi is completely different. I’m less upset about the government’s new play — which doesn’t include just throwing taxpayer money at a bank and hoping executive bonuses save the financial system — than I am about Citi’s own decisions lately.

I’ve all but decided to pull my money out of Citi, but not because Dave Ramsey tells me to, or because I’m upset about the government owning a little more than 1/3 of the bank. I’m upset because, after taking taxpayer bailout money over the course of the last few months, Citi is sticking it back to the taxpayers with higher interest rates and massive lay-offs.

As for Bank of America, I tend to agree with the assessment Financial Methods made of the situation: Why create a run on BofA that could further destabilize the financial system and the economy?

What do you think about government stakes in banks? Would it be enough for you to boycott a financial institution?

image source: daveramsey.com

The Dow jumped 889 points today, the second largest increase ever…and I don’t want to sound like the soothsayer, but beware the 900 point pop.

I know the market has been hammered and I know that many are factoring in an expected 50 basis point cut tomorrow from the Fed, but this makes no sense.  The Dow’s gain doubled during the last hour of trading. 

Financials led the Dow higher while techs led Nasdaq’s 9.5 percent jump.  Take a look at the price gainers list for each exchange: NYSE and Nasdaq.

Citigroup up 15 percent, AIG up 35 percent.  Moves like this are too big and too irrational to be permanent.  Looks like just another bout of speculators and bargain-hunters trading on sectors and not on individual stocks.

Et tu S&P 500! ;)