Saudi Prince, China bank to invest in Citigroup: report

[EMRGLOBAL]

Here is a RED PILL for ya,


"Merrill Lynch, the third largest U.S. securities firm, is expected to write down $15 billion in the fourth quarter, nearly twice as much as previously announced. Analysts had recently been expecting a $12 billion loss for the same period. Citigroup may face another $14 billion of losses, according to J.P. Morgan Chase and Bank of America may announce $5 billion of write-downs in collateralized debt obligations."

One of many RED PILLS.

After this is all over the American People will need a Blue Pill, not for sex but for sedation.

HEY HO LETS GO!

 

[trader_arb]

Quote from TraderDrake:

Not yet it dosen't make sense. Why pay $26 for something you can buy for $5 in a year or so? Just b/c you have billions, buying today is "not on the cheap", it's just cheaper than it was. People were using thta same argument when BAC made it's first purchase of CFC (down 70%). There is no denying that was a poor trade, so why is today the "bottom"?

Even CFC was not bought out at a premium. These are desperate attempts at a last gasp. All the BAC/CFC merger did was confirm BAC is now one of the better shorts in the financial industry. C is gonna get cranked in a big way.

Why is everyone so convinced none of these stocks will ever go up again? If it was that obvious the stocks would have been at $5 already. The sentiment is actually a bullish indicator if anything.

BAC buying CFC -why so bad? When the housing market picks up again that investment will probably be up hundreds of percent (they have a time frame longer than 24 hours), plus there is also an intangible value. And since NOBODY can pick a bottom, how can anyone be so certain this is bad? (Don't forget about massive tax write-offs in the mean time)

 

[Brandonf]

Quote from TraderDrake:

Not yet it dosen't make sense. Why pay $26 for something you can buy for $5 in a year or so? Just b/c you have billions, buying today is "not on the cheap", it's just cheaper than it was. People were using thta same argument when BAC made it's first purchase of CFC (down 70%). There is no denying that was a poor trade, so why is today the "bottom"?

Even CFC was not bought out at a premium. These are desperate attempts at a last gasp. All the BAC/CFC merger did was confirm BAC is now one of the better shorts in the financial industry. C is gonna get cranked in a big way.

I don't know what will happen with C a year out or two years out etc, but I will say the chart looks like crap, in fact its looking like a company that's heading for bankruptcy. If the financial crisis gets worse, that could well happen to a few big players.

Brandon

 

[ASusilovic]

Quote from EMRGLOBAL:

What? You think CITI will be worth 50 in a few years?

Based on? The Banks and Brokers have yet to truly meltdown. Wall Stree, Arabs, & SWF (Soverign Wealth Funds) will keep the XBK, XBD limping along for a year or so.

We are only hitting the tip on the CDO's. No one on the street has spoken about the Derivative implosion that is project to follow the "Junk Bond" implosion we are seeing in the CDO markets.

You have to have your head in the sand to truly believe that CITI, WAMU, BAC etc will be around in the same manner as they were the last decade or two.

Who knows what the land scape will look like in the Financial World by 2010. However, I highly doubt you will see any of the later banks at 50 per share.


The powers that be may be able to push the full brunt of the Financial meltdown off till after the the presidential elections.

So, to the Sheepole and Sheeptraders of ET:

"You take the blue pill and the story ends. You wake in your bed and believe whatever you want to believe" You take the red pill and you stay in Wonderland and the "Market" will show you how deep the rabbit hole goes."

I am sure you are able to underscore your observation with some hard facts. I mean the kind of hard facts I call "numbers crunching"...