2008-11-20blogspot.com

Citigroup is blaming shorts when the short interest is under 3%. That's ridiculous. If Citigroup does not understand this, it is a sign of incompetence. If Citigroup does understand how ridiculous their claim looks (and is), that is additional support for the desperation thesis.

Note the dividend. Citigroup is paying a dividend when it is clearly in need of capital . Is that a sign of arrogance or incompetence?

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Citigroup would not be trading under $5 nor would it be down over 50% in two days if it was well capitalized as it claims. There is something wrong somewhere for the stock to be acting this way. Hiding behind accounting rule changes in this market is simply not going to work. Blaming short selling will not work either.

Looking ahead, foreclosures, credit card defaults, and bankruptcies are going to soar along with a soaring unemployment rate. Banks in general, and citigroup specifically, are woefully undercapitalized and unprepared for what is about to happen. One look at a chart of Citigroup should be proof enough.

The market seems to believe Citigroup is insolvent and so do I.


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Comments:

tvsterling at 21:38 2008-11-20 said:
The article describes Citigroup's desperate attempt to hide it's incompetence & continuing greed (now financed by we the people). A typical PR wonk's typical PR Fart; a little fishier smelling one than usual. Permalink

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