Abu Dhabi Bails Out Citigroup

The Abu Dhabi Investment Fund, the sovereign fund of that oil-rich member of the UAE, has invested $7.5 billion into Citigroup; the huge stock purchase will help the bank to offset its huge expected losses.

In other financial news, S&P says that US home prices fell 1.7% this quarter, and are down 4.5% from a year ago; although the meaning of these declines (the sharpest since S&P began keeping the index in 1987) is not completely clear, Robert Shiller, Chief Economist of MacroMarkets LLC now puts the odds of the US going into recession at 50%.