Citigroup raised $5 billion in government-guaranteed bonds on Tuesday under a emergency facility that is set to expire in six weeks and has been abandoned by most of its rivals as market conditions improved.
The key here is "government-guaranteed". Citi would never have been able to raise this money without the guarantee. Talk about crowding out. That's $5 billion that ended up in the hands of a government favored institution, and now not available for others.
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