Meredith reminds me of a little hunch back that the Romans or Greeks would use to go around the battlefield and "spear" the wounded after the battle had been lost. She waits until "C" stock had already dropped 60-70% and then makes the negative news call. Sure sounds like somebody with a huge short position and an "agenda" - not saying anything for a fact - just stating my opinion. I still think C is a great buy here.
It must suck that she has been right and you have been wrong.
Listen or continue to be wrong.
She is far from the only one taking the same position and was actually late to the game compared to others that continue to nail this.
Citi hasnt even entered the credit card phase of its problems. No other bank has as much exposure to both phases of the financial crises (subprime mortgage and the looming credit card debt crisis). As unemployment and inflation increase, so does credit card use for non-discretionary spending (gas & groceries). If you cant pay cash for that, whats the odds you can pay the credit card bill? May be some short term trades but i wouldnt invest long on this company for at least several years.
C has incresed reserves by alomst 8 billions over the last 3 quaters. They have experienced some increses in credit card defaults. However, C has incresed loss reserves by a huge amount over the last 2-3 quaters. Loss resevers are in fact much higher than BAC.