CitiBank going under----

NY_HOOD · Jan 12, 2009

the stock will be worthless,Citi may go on but will be forced to sell almost everything causing shareholders to lose their bets. this is very lehmanish and bear stearnish. at first it seems like a bargain and bounces big off the bottom causing investors to think the stock had no business being down as much as it was. then it slowly drifts back down to the old low before bad news strikes again and crushes the stock to new lows where it is basically deemed worthless.
the fact that citi is selling their most profitable or one of their most treasured assets has to tell you something.
if Citi was such a bargain and the downside was limited,C would not be trading near 5 bucks. something is going on.

NY_HOOD · Jan 12, 2009

the treasured asset i was referring to was smith barney.

MrDODGE · Jan 12, 2009

Correction:

Citigroup, AIG, and several other company's stock has been worthless since the government got involved. The market is just realizing it now.

stock_trad3r · Jan 12, 2009

since you cant short it does it matter?

MrDODGE · Jan 12, 2009

Quote from stock_trad3r:

since you cant short it does it matter?

There were a lot of OTM puts traded today. So yes, it does matter.

Corelio · Jan 12, 2009

One may find Larry Summer's Letter to Congressional Leaders helpful. Point #4 on the letter is of particular importance.

NY0BScalper · Jan 12, 2009

Quote from stock_trad3r:

since you cant short it does it matter?

No problems with locates here.

Rehoboth · Jan 12, 2009

Quote from stock_trad3r:

since you cant short it does it matter?

Wow if you cant short it, find a new clearing firm.

Clubber Lang · Jan 12, 2009

Quote from Rehoboth:

Wow if you cant short it, find a new clearing firm.

He can't short it because he bought the "StockTrad3r index" (consisting on MOS, POT, FCX, AAPL, GOOG, FSLR, RIMM) and a handful of other 70-80% losers.

Now he needs to collect money from his paper route in order to re-capitalize his dwindling Ameritrade account.

Werd.

drsteph · Jan 12, 2009

Quote from NY_HOOD:

the stock will be worthless,Citi may go on but will be forced to sell almost everything causing shareholders to lose their bets. this is very lehmanish and bear stearnish. at first it seems like a bargain and bounces big off the bottom causing investors to think the stock had no business being down as much as it was. then it slowly drifts back down to the old low before bad news strikes again and crushes the stock to new lows where it is basically deemed worthless.
the fact that citi is selling their most profitable or one of their most treasured assets has to tell you something.
if Citi was such a bargain and the downside was limited,C would not be trading near 5 bucks. something is going on.

Rubin's resignation may be a tell on this.