03/10/09

The New F#[email protected] Citibank

So, Citigroups CEO comes out this morning saying that they are on track for their first profitable quarter since Dec. 2007:

Citigroup: CEO Vikram Pandit, in a letter to employees, said the bank was profitable year-to-date and that it is confident about its capital position. The letter, filed with the Securities and Exchange Commission, was a relief to investors after Citi’s share price broke the buck as the company has struggled to stay afloat. However, most of Wall Street disagrees with Pandit’s comparatively optimistic outlook.

The government has stepped in repeatedly to bolster Citi, most recently last week when it agreed to take up to a 36% stake in the company. Pandit’s letter said that, so far, the first quarter of 2009 has been the best since the third of 2007, the last time Citi was profitable. Yet, the letter did not specify how much credit losses and other one-time items would offset the profit. (Full story)

Not so fast – that is before they deduct debts etc. So on a rumor more or less, the market skyrockets over 370 points. Hard to understand all the frenzy over Citi when their stocks were trading for less than a buck a day or so ago.

Barney Frank also came out and stated that the Uptick Rule will be reinstated:

“Citigroup got us started, but then Barney Frank came out and said that the uptick rule could be reinstated and that helped a lot too,” said Tom Schrader, managing director at Stifel Nicolaus.

Rep. Barney Frank, D-Mass., the head of the U.S. House Financial Services Committee told reporters Tuesday that the Securities and Exchange Commission would restore the “uptick rule.” The SEC said it could reinstate the rule as early as next monht.

The uptick rule — which was in place until July 2007 — limited short sellers from adding to the downward momentum of a stock that is already plunging. In short selling, traders make money when the price of a stock falls.

Critics say the ending of the uptick rule has added to the selling in the financial sector stocks over the last year and a half.

There is a huge debate on whether the selling was due to this or not. I guess we will see, but I don’t think this will keep the stock market from tanking. Better get your funds out while it is up even slightly, because I have a bad feeling we are nowhere near the bottom yet.

Tom Elia brings us humor concerning Citibank (warning: adult language):

03/10/09

Smoke and Mirrors for the Military – Obama Style…

Distract and confuse should be The One’s motto. Nothing in this Presidency is what it seems…

From Greyhawk at Mudville Gazette – The Iraq drawdown scam:

Greetings, Greyhawk here. It’s been a while since I’ve had something
this significant to report, but I’m not sure the significance will be
obvious to non-milbloggers.

If you take a Brigade sceduled to go to Iraq and schedule it to go to
Afghanistan instead, then make headlines for drawing down Iraq and
building up Afghanistan, could you pull off substituting another
Brigade into the Iraq rotation for the one you diverted without anyone
in the media pointing out that your drawdown is a scam, a hoax on the
American public?

Of course you can. (Well, you and I can’t. And George Bush probably
couldn’t. But Barack Obama can. After all, “yes we can” is his motto,
right?)

And yes he did.

http://www.mudvillegazette.com/031615.html

Another piece from Bob Owens at Confederate Yankee is a must read as well:

Hustled: How Obama Deceived America About a Drawdown in Iraq and a “Surge” In Afghanistan By Playing With The Lives Of American Soldiers

It is relatively rare when we see a situation where people from both ends of the political spectrum and all points in between can unite for any reason, but using the lives of soldiers as political props is certainly one of them.

read more…

Truth and change you just can’t believe in folks…