Friday, 16 January 2009

Financials in crisis!

Today was huge news. I am going to put in quotes from a Bloomberg Article today. "Citigroup posted an $8.29 billion fourth-quarter loss, completing its worst year, as the credit crisis eroded mortgage-bond prices and customers missed more loan payments. The stock rose after the company announced plans to split in two." These guys have lost billions of dollars for the last year. They lost $9.8 bil in Q4 '07, $5.1 bil in Q1 '08, $2.4 bil in Q2 '08, $2.8 bil in Q3 '08, and now just announced they lost another $8.29 bil in Q4 '08. What does that tell you? It should tell you that they are incompetent at running a bank and took huge risks. “It looks like a kitchen-sink quarter,” said Peter Sorrentino, who helps manage $16 billion at Huntington Asset Advisors Inc. in Cincinnati, including Citigroup shares. “Sweep it all in there and get this behind us.” Not likely. More pollyanna talk from another bogus fund manager who probably lost his clients money last year. They are all hoping this is the last of it. You can hear it in his comments, "Sweep it all in there". They just want it swept under the rug, and we will all go back to normal. It's not going to happen. The world markets are rallying on the news that the Fed will "do whatever it takes" to shore up the financial system. These guys are clueless. It is amazing people haven't realized that yet. Their actions should be showing people that they have no idea what to do to prevent the next Great Depression. Instead, because of the brain washing of the populous, people are made to believe they need these guys because they are the only ones who can save the financial system. THEY HAVE NO IDEA WHAT TO DO.

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