Citi came out with great news today. They wrote down $15 billion in losses, primarily due to subprime risk they had on their books. They also lost more than $5 billion in total profit, mainly due to troubles to their fixed income business and higher consumer credit costs. Revenue for the company is half of what it was a year ago. This is such “great” news that the stock traded up 4.5% on the day, actually creating $6 billion worth of equity to their market cap.
Oh, and they also are firing 9,000 people. Apparently swiftly adding 9,000 unemployed people to the economy is such good news that the entire market traded up 2%!
The market is trading backwards right now, people. Do not let it fool you.
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