Citi's Off Balance Sheet Liabilities: Spooky as a Halloween Apparition

The off balance sheet liabilities are as spooky as any Halloween apparition for Citigroup (C) holders. A host of additional downgrades came on the heels of a Forbes article that raises serious questions on the liquidity at Citigroup.

I will not rehash the story here but suffice to say the credit crunch is still lurking in the weeds. That is the trouble with these "invisible" liabilities, there is no SEC reporting requirements so it is very hard to put a handle on the potential losses or capital requirements.

Many are saying Citi will need to cut the dividend immediately to ensure adequate working capital. Sadly, I think I smell a bailout in the works. This SIV Superfund may get done after all. But don't kid yourself - the fund is nothing more than a garbage dump for the structured waste that no one can price and no one wants. Ultimately I know who will pay for the fiasco: Yeah look in the mirror.