Somebody knows something. There was Citigroup all flush and happy with TARP money to swim in. Bloomberg reports an incredible piece of good news that proves financial engineering can paper over and structural defect. That article shows Citi "booking" a $10 Billion Gain on Morgan Stanley Deal. How you may ask incredulously? The pretax gain would come from writing up the value of Citigroup’s Smith Barney unit to a new price set by the deal, said the person, who declined to be identified because the talks are confidential. The gain of $5 billion to $6 billion after taxes would flow into Citigroup’s capital, a loan-loss cushion
Yep, a forced and subsidized merger of Morgan Stanley and Smith Barney for a fire sale $3 billion turns into a $20 billion deal.
Okay, look at the chart above. Look at the volume. Those of you so inclined can also look at the heavy volume on the open this morning (Mon, Jan 12). Somebody knows something and when the news hits the rest of us it will be in the form of a bill for the clean up.
4 comments:
why are taxpayers always the first in line to get screwed?
And what's with the otter?
I'm too thin to be a fat walrus so now I'm a skinny otter.
Ventura County Census
This pretty funny:
"To understand how the census isn’t exact science, look no further than Santa Paula. The new data show there are exactly zero African-Americans in the city and the Latino population was too small to measure, at which City Manager Wally Bobkiewicz laughed.
Bobkiewicz said he knows at least 20 blacks in the city and the city is overwhelmingly Latino."
"The new information also says the mean commuting time increased by 1.9 minutes, a fact Bobkiewicz found amusing considering Money Magazine listed the city as one of the “best places to ride out the gas crunch” because of the high percentage of car poolers.
Hmnnn...lots of car poolers who are driving together to farm fields. The city is overwhelmingly latino but they do not show up in the census?
Now this:
"The trend of fewer whites is happening across Southern California and is predicted to continue in the coming years. The Ventura Council of Governments predicts that by 2040 whites will make up about 40 percent of the overall population, and Latinos, 50 percent.
This is a bogus statistic because half of those latinos will be from intemarriage of whites and latinos so how can you call them latino only? Maybe we need a new race here called Californio?
w,
I'll do avocado and demographic posts later. For now HIG is going down. Looks like today is the next stairstep down.
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