Thin cruel at the Motley Fool

Back on February 23, the Motley Fool opined that the Government investment into Citigroup common was a mistake:

For taxpayers, this is a pretty raw deal. While no new money will be added to the tens of billions already ponied up, the money we've already injected gets immediately hacked down in value... For taxpayers who feel they've been mugged, you've now been sucker-punched, too. Citi's common stock will have to produce something in the neighborhood of a 10-bagger for taxpayers to recoup their initial investment.

Now that the Government is up $12 billion on their stake, the Motley Fool is at it again, warning us about the Government conversion of their stake, and how "dilutive" this is to current shareholders.

Excuse me, but I'm sorry that us shareholders are so stupid.

Look at what they said:

As Faber notes, this isn't yet accounted for on most finance sites. Yahoo! Finance shows that Citigroup has 5.5 billion shares outstanding, and a $26 billion market cap.

Oh. We are all so dumb.

Converting preferred into equity, and it increases shares, but Citi also got rid of their obligation. To use the Fool's logic, you could say that debt is not a consideration in valuing a company!

Who would believe that?

But then, if our Government would have listened to these folks, they would have left $12 billion on the table.

So now the Fool wants a twofer!

But this time they want the public to leave billions and billions on the table by not investing in Citi!

I have a few words for the Fool.com.

"Fool me once, shame on you. Fool me twice, shame on me!"

At least this time, it looks as though the public isn't listening!