Citigroup: More “Substantial” Writedowns Ahead

June 20, 2008 12:02 AM

Citigroup has raised billions and billions of dollars. They have wrote off billions and billions more in bad loans. Today they warned that there would be “substantial” writedowns coming in the months ahead. That’s a shock, like not at all. I thought we had a full disclosure law that was created after Enron???? Why is it not being enforced? They had to have known this for a long time, and said nothing.

This is another reason this rally off the lows today does not smell right. This is not just bad news, this is a warning that this is going to last AND get worse. They also mentioned that there would be writedowns related to consumer loans, not just subprime. This same fact is going to spread across the entire financial and banking sector as I have long warned. The debt levels related to real incomes for U.S consumers does not match. Period. This is the first time probably in history, including the Great Depression era, that this is the case. We cannot have a rising economy without real incomes increasing. Period, end of discussion. And that is not the case even using the …uhhh…slightly distorted inflation numbers being reported. If real inflation was being reported, real incomes would be plunging at an alarming rate. This will be felt in bad loans as I have said many, many times.

Someone please wake me when the dollar is worth less than toilet paper.

Written by Tom@StockBlade.com · Filed Under C

Comments

One Response to “Citigroup: More “Substantial” Writedowns Ahead”

mikey on June 25th, 2008 2:52 pm

What is tangible book value for C?

$14 ?

This statistic is not found on Yahoo Finance. Know any free sites that provide this data? Thanks!

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