This morning the major investment banks started reporting and by golly it’s so shocking to see the results that they beat their lowered estimates, I honestly do not know how I can contain myself.
Or not.
The BBB this morning (Big Bubblevision Bromance, not the bill) is with the super duper amazingly great Citigroup earnings announced this morning, as per this headline and story on CNBC:
Citigroup beats second-quarter estimates as markets and banking revenues jump
Now before you get all excited that the stock rallied hard on the earnings news and one might think this is buy of a lifetime still at $90 per share, one needs to look at a little history.
Let’s just take a gander at the one year chart of C:
Pretty awesome. If one purchased the stock before the US elections anticipating an inflationary Trump regime, the investment has almost doubled.
However if one bought it for $55.00 in 2008 or even 1996, welp:
In fact if one was to have bottom chased after Ben Bernanke’s great quantitative easing to infinity and beyond announcement in March of 2009, the beatings continued until 2011 when it got worse:
So for those readers new to equities and the history of markets, I hope everyone pays attention. It’s not always what it seems and history has a very cruel way of repeating and teaching harsher lessons than the last time. I shall not bore my readers by going through all the times since 1907 that the predecessors of this bank has nearly perished.
But I think it is running out of nine lives.
One might ask, why is the stock up today then on the earnings news if there are no surprises? Just this headline via Bloomberg should provide some insight:
Citi Shares Climb to Highest Since 2008 on Stock Buyback Plan
The big question is if everything is going so great, why in God’s name would CEO Jane Fraser have to drop this bit in her interviews and conference call to try to stay relevant in the modern world of finance? Via @financialjuice on X:
This is the kind of statement one makes to say “hey young kids, check out how hip I am” when they don’t understand a damned thing about the subject be it memecoins or shitcoins and just want to attract attention.
Hopefully she keeps a tighter grip on the remainder of her consumer credit business because it is deteriorating rapidly after student loan repayments and foreclosures begin in the third and fourth quarter.
Next up, who wants to relive the memories of Government Motors? Because that’s why the majority of American manufactured automobiles have turned into frequently recalled technologically nightmarish pieces of crap.
