Wow, do you have a complex or something? Where did I hate on you? I just told a random story, and made a good point about logical fallacies. It wasn't his car, it was the fact he wasn't repairing a very obvious problem after a year or so, there's no way someone with money would leave it as long as he did.

Seriously, you can't make one liner posts saying to buy a failing company that is worth zero and use appeal to authority to justify it and be surprised when people mock you. And when people do offer something constructive you can't just call it 'hate' because its not what you were after.

Boy do I wish I had a clue, after the Obama statement today is the first time I really believed that a major bank would be taken over and since the inner circle hasn't yet refined the details I'm just reading between the lines. Watching the price action of the banks today makes me concerned for either BAC or C with C being the most likely and JPM/GS being the safest. I'd throw Wells Fargo into the safe category too since Obama won't want to screw WB.

Other than that it's all a SWAG.

Bloomberg news is reporting that Citi, JP Morgan/Chase and 7 other financial institutions CEOs have been summoned to testify before Congress next week.
This should be a nice friendly meeting.

I agree with C being the weakest of the big boys they are first in line to be nationalized if something along those lines were to happen. We'll see though, BAC is stronger then C right now but that could change as the integration of Merrill and Countrywide might choke BAC.

Accountants are bean counters... and know jack **** about making money in the financial markets. My firm nets 7 figures trading annually... and I have had 6 or 7 accountants over the last 15 years. NOT ONE of them has shown any real understanding of how I make money... even though they have seen all of my brokerage statements. Except maybe my current Auditor... but only because he has a Masters in Math. And I'm not even sure about him.

There's actually a larger lesson here. Even if I posted a precise 20 page document explaining EXACTLY how I consistently make money trading... only about 1% of the people here would have the talent and discipline to actually duplicate what I do. And it would take them 1-2 years to build the infrastructure and get up to speed.

Sort of like only 1% of you could make > 100K per year playing poker... because that's the way it is with all Zero Sum Games. The competition ensures only the fittest survive.

So, gonna post it?

Is choking may be substituted for might choke.

Or Choked.


But I was hinting that it may get worse than it already is for BAC.

How much of your trading is formula vs feel?
If largely the former, then your 1% estimate makes no sense.
If largely the latter, how could you begin to spell out years of experience and patterns engrained in your unconscious memory?

One part of me likes buying Citigroup purely because everyone isn't. The other part of me likes sammiches.

You do realize that there is a lot more than share price right? You should be looking at the market cap more. Even though Citi is only $3.65/share right now, the company is valued at $19.35 Billion.

As a comparison, American Express (AXP) is currently trading at $16.98/share. That might sound a lot more expensive, but their market cap is almost the same -- $19.40 Billion. So despite the almost 5x difference in share price, the companies are actually worth the same amount of money at today's closing price.

So if you think Citi is worth more than $19.35 Billion as a company then by all means buy their shares. However, don't buy just because they are "only" $3.65/share

man i have never been more happy to be an accounting major

i have 3 accounting professors this semester, so i'm going to be 3x as rich as you!

Well, I crushed the bottom part of this quote and as such, I'd love to hear about the top part in detail. PM if you are hiring, I'm bored, motivated, and interested.

Cheers

YES

If you are bullish on C buy the bonds. They are yielding almost 10% for years and years, isnt this kind of return many seek in the stock market?C is too big to fail so the bonds should do fine, the common stock is worth very little if not worthless

While I may not have the bank vault full of money that this professor does, one should never underestimate the power of laziness. My brand new car (paid via check) was dented not 2 weeks after I bought it. I had not even had the body kit put on at this time. I only had it repaired after a hail storm damaged it over a year later (and the hail storm damage I waited 11 months to fix).

Logical fallacies about the behavior of people who can afford to do certain things abound....

*Note for mod, not hating, simply pointing out

If C is too big to fail but still failing miserably, is there a scenario in which the government takes them over that would supercede bond holders and jeopardize that yield as well?

Yeah but this wasn't a dint, it was a side door that was pretty collapsed in. I see your point, and I thought about it, but his personality + size of damage, if you're really a big shot you get it fixed

5 star thread

go all in

The Najarian guy on CNBC said that Citibank was starting to look like a buy, back when it was 35.

This is when you have to use the old contra CNBC tout play.

IMO, an investor is better off being deaf and blind to all the media noise, than to try and form and investment strategy based on it. The market can only go either up, down or sideways, and there's always someone making a case for each.

My response was tongue in cheek. I do not consume any TV or radio business news from 6 am until 5 pm for that very reason.

It's a smart move. I stopped watching CNBC, completely.