#11
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Re: who\'s buying Citigroup
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Maybe, but Citigroup is run by a bunch of morons. Just compare the costs of their recent debt and equity financing to see what I'm talking about. [/ QUOTE ] Nice how you call the morons after the fact. Thanks for playing! |
#12
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Re: who\'s buying Citigroup
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[ QUOTE ] Too good to be true? The company takes out what amounts to a subprime mortgage, and pays 11% interest. That sure sounds like desparation. Too good to be true, lol. [/ QUOTE ] It's actually a great deal for Citi, all things considered. Thinking of this as paying 11% in interest is entirely misleading, given that the mandatory conversion provision. [/ QUOTE ] Yeah, so that after the conversion, it's highly dilutive. Nice. |
#13
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Re: who\'s buying Citigroup
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[ QUOTE ] [ QUOTE ] [ QUOTE ] Too good to be true? The company takes out what amounts to a subprime mortgage, and pays 11% interest. That sure sounds like desparation. Too good to be true, lol. [/ QUOTE ] You are trying to make a complex transaction seem too simplistic. Jimbo [/ QUOTE ] Maybe, but Citigroup is run by a bunch of morons. Just compare the costs of their recent debt and equity financing to see what I'm talking about. [/ QUOTE ] I think when you call the citi mgmt team a bunch of morons, the onus of proof falls on your shoulders, not anyone else. The mgmt team, I daresay, has a pretty good pedigree. there may be slightly more than meets the eye to this transaction. In any event, I would welcome a post by you with thoughtful reasons to backup your statements. [/ QUOTE ] Morons, maybe not. Excessively greedy and imprudent, certainly. Inadequate, or no DD on a lot of garbage paper. And then trying to hide it by putting off the writedowns as long as possible. |
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