Look at this way

It looks very clear and intelligent move from government stand point, that they need more tools and institutions to attack the financial crisis. They have Freddie Mac, Fannie Mae for mortgages, AIG for insurance, and they need a large financial firm to work as proxy for government to clean up the mess. Its a long and painful process and government knew it lacks a strong franchise to go with full guns. The weakest and biggest firm C is a right candidate to do so.

In my opinion, they will continue to increse stake in Citi and pour in huge amounts until the financial crisis is addressed. Look at this way .. Freddie Mac, Fannie Mae, AIG and C are now the war ships for US to attack the problem. In general its a great move for recovery, involves lot of money and time too. And Government needed to increase the involvement, carrying a huge task.

This is not the time for thinking of Tax payer returns, the returns that they get are in different forms. Not necessary in the form of buy/sell ratio on the Citi investment. And for Citi common share holders its a blow and mark my words, Citi share is not for the long term bet. People can trade for a quick buck, but share value will see further declines and will be traded as another AIG,FNM and FRE.