raja

A Debate Over Citi

if Citi were to come out with the truth as to where they exactly stand with regard to the value of their investments, it will go down to 10 within a day or two of such announcement.

They are living on borrowed money from the Fed. Do we know how much they have borrowed?? They are using accounting methodolgy to defer losses, and every trick in the book to make it look not as bad. By the way, since when is borrowing capital good ? especially when it is not for growth, but for survival??

Citi to 10 may be first and more probable than Citi to 40

Why Yesterday's Optimism Wasn't Warranted

MER will announce at least 6 Billion in losses and it wont be over. Till the govt. does something big about subprime/ CDOs/Housing, the bleeding wont stop.

A couple of Investment banks need to go down - just like BSC did. That will cleanse the market and the true value of securities will be revealed. Remember how BSC ( and other inv. firms)was telling it was difficult to evaluate their securities due to the complex nature?? Well, overnight how did they (JPM and the Fed) decide that BSC was worth $2.00 - where was the complexity hidden, and unmasked just like that ??

Time to take a haircut - or should I say, completely shave the head?