[lbo-talk] Alas, poor Citibank!

[Carl Remick]

On Nov 7, 2007 1:30 AM, Jordan Hayes <jmhayes at j-o-r-d-a-n.com> wrote:
> > there is reason to believe This Time Will Be Different.
>
> Yes, an $11B loss sounds huge ... until you see that Citi's gross
> profits over the last few years have all been north of $100B -- per
> year!  Net profits in the $25B (per year!) range, with net income since
> 9/11 of nearly $140B.
>
> This Time It Will Be Different because This Time It's Chump Change.

There seems to be an awful lot of weeping, wailing and gnashing of
teeth among Wall Street's high command over this "chump change."  For
one thing, this "CC" may merely be the iceberg's tip; no one *really
knows* just how bad Citi's loses have been to date.  Another problem
is institutional contagion:  How much of Citi's securitized junk has
infested other institutions' balance sheets and not been identified
yet?

But if you see this as a buying opportunity, please feel free to load
up on Citi shares.  As I recall, you were one of the strongest
perma-bulls during the bubble-icious stock market of the '90s, so
there's obviously no reason to doubt your prowess as a market-timer
now ;-)

Carl