Gerry Sullivan

Why I'm Buying Citigroup Stock

Hyperinflation, how can you or I understand any bank's balance sheet? Goldman (GS) has over $30 trillion in derivitives. JPM has over $87 trillion. BAC and Citi both have more than Goldman.
JPM's derivitive position is more than 600 times its equity.

The government has made the decision that these banks are not going to fail. They will be nursed back to health. Getting C, BAC, and others healthy has created a situation where GS can make enormous profits.

We have seen this before, most recently in 1990. Many large banks were technically insovent but they returned to health. The stocks were great investments.

C is up 15% since my recommendation. If it is overpriced you can short it and profit.

I notice that even with the market down today the lower quality banks are rising: C, BAC, MI, FITB, etc.