CitiBank going under----

the stock will be worthless,Citi may go on but will be forced to sell almost everything causing shareholders to lose their bets. this is very lehmanish and bear stearnish. at first it seems like a bargain and bounces big off the bottom causing investors to think the stock had no business being down as much as it was. then it slowly drifts back down to the old low before bad news strikes again and crushes the stock to new lows where it is basically deemed worthless.
the fact that citi is selling their most profitable or one of their most treasured assets has to tell you something.
if Citi was such a bargain and the downside was limited,C would not be trading near 5 bucks. something is going on.

 

the treasured asset i was referring to was smith barney.

 

Correction:

Citigroup, AIG, and several other company's stock has been worthless since the government got involved. The market is just realizing it now.

 

since you cant short it does it matter?

 

There were a lot of OTM puts traded today. So yes, it does matter.

 

One may find Larry Summer's Letter to Congressional Leaders helpful. Point #4 on the letter is of particular importance.

 

No problems with locates here.

 

Wow if you cant short it, find a new clearing firm.

 

He can't short it because he bought the "StockTrad3r index" (consisting on MOS, POT, FCX, AAPL, GOOG, FSLR, RIMM) and a handful of other 70-80% losers.

Now he needs to collect money from his paper route in order to re-capitalize his dwindling Ameritrade account.

Werd.

 

Rubin's resignation may be a tell on this.