I am thinking about if I should make a long investment in CITI.
But what I want to know is if CITI is insolvent.
Does any one know what the exposure on the default swaps is. Also I am concerned that the next shoe to drop is commercial real estate and credit card default. Scary times...
What are the chances that CITI BK's?
First off, I would take all recommendations here with a grain of salt.
here is my 2 cents. I don't think C will go under. But that does not mean the stock will not hit single digits. Hopefully not, but at least will touch the 10 dollar mark.
I would look for all stocks to re-trace back to 2003 level maybe even lower.
Global economies will continue to strain until oil drops to 50 or lower. No economy can survive with the high price. When USA suffers so does the rest of the world. The OPEC folks are already predicting 50 dollars on the way.
When oil drops to a level that is affordable. Main street will have money to spend on other things other than oil. When there is spending you will see the economy recovering. That in turns bring more confidence ... etc etc ...
This will take a few quarters to play out. Don't expect banks to make money like they use to.
the washingturds are clueless, fix the energy problem, cut corp. taxes and cut spending, WOULD HELP CREATE QUALITY JOBS, BUT WE GOTTA SAVE THEM MARSH RABBITS, SNAILS, LIZARDS AND THE BATS SCREW THE PEOPLE NO FUEL FOR U THEY SAY OH AND OF COURSE ITS G.W.BUSHES FAULT WHAT PATHETIC SCUMBAGS ,everyone in the US CONGREASE AND SENATE should resign .
Why would anyone invest now when 4th quarter credit card default looms large with deep recession on the doorstep? Buy 6 months from now when the stock is around 12. If you must only invest in a third of your ultimate position at a time.
buy low, sell high. today maybe the first part of the equation.
C is solid or the fed would not have approached it for the WB deal.
I wouldn't got to an unemployed person to sell my house, would you. obviously C is on the prowl for its longterm goals.
Small. the problem though is that if the government needs to inject capital etc (which will probbaly happen across the system) the existing sharehloders and junior bondholders will be in trouble (dilution, first-loss hit, etc). So, seemingly bargain price now, but I cannot be overly optemistic after all that is happening.
What about the total liabilities from the credit default swaps they sold. My worry is that CITI is contractually on the hook for trillions and trillions. And that at the end of the day it is impossible for them to meet their obligations. Until this gets explained to me, I am very cautious w.r.t. CITI.