CitiGroup is collapsing!!

[msufan]

Citigroup Profit Fell 57% in Third Quarter -- well, bye bye CitiBank, too bad you got completely overloaded on bad housing loans.... if I had money in that bank, I'd be taking it out right about now!!

Profit falling 57% means it made less money, but not that it lost money. That's an important distinction.

 

[aspirine]

It was the foolish monetary policies of jerks like Citi that lead to the absurd and evil rise in housing prices. I hope they go under. I hope the real estate speculators lose their money including their retirement funds.

They artificially raised the cost of housing until a working person can no longer afford to own one. Thus the young lose the security of a single neighborhood for their childhoods.

 

[PacificPandeist]

I read somewhere that Citigroups losses are going to exceed 28 BILLION dollars!! That's unthinkable!!

 

[happydance]

Yeek! The stock price graph looks horrible.
Hold on tight!

 

[trunks2k]

I read somewhere that Citigroups losses are going to exceed 28 BILLION dollars!! That's unthinkable!!

Is that loss, or fall in profit? The OP said there was a 57% fall in profit, which isn't a loss.

I just have two credit cards with citi bank, that's it. I'll just be annoyed if something happens and I can't ever utilize my rewards points.

 

[Fantine]

Business Week says this about Citigroup:

"We value [Citi's] diversification," says Tanya S. Azarchs of Standard & Poor's (MHP). "It's a good safeguard for what goes wrong in one area if you have others that are working." Indeed, during the subprime storm, Citi's international, wealth management, and other businesses have helped smooth out its earnings results; without them, the profit hit would be even worse.

http://www.businessweek.com/bwdaily/dnflash/content/nov2007/db2007117_653402.htm?campaign_id=yhoo

I agree that Citigroup is large enough and diversified enough that it can get back on its feet with a new CEO and better management.

 

[JustOneWay]

Citigroup Profit Fell 57% in Third Quarter -- well, bye bye CitiBank, too bad you got completely overloaded on bad housing loans.... if I had money in that bank, I'd be taking it out right about now!!

In the last four years, I received at least $500 worth of junk mail from Citigroup. I hope they go away because it will save a few forests

 

[wpiman2]

The P/E ratio is still a low 8.8. That looks pretty good to me still.

What is really interesting is their cash flow numbers. They lost A LOT of cash from operations, and borrowed A LOT of money. Looks like the earnings might be a little skewed.

 

[Lynden1000]

They pay a good dividend yield on their stock too...currently about 5.6%

 

[PacificPandeist]

Their CEO got fired (and weirdly enough got replaced by a Clinton operative), and their breaking off some divisions... I guess that's what it takes to bring them back....