View Full Version : Fox Sponsor: Citibank - extremely vulnerable

01-08-2008, 01:43 AM
We all know that when people are gripped by fear they are prompted to quick action. Nothing seems to cause more widespread panic than a bank run. In August 2007 depositors withdrew 12B of 20B GBP from Northern Rock in 3 days almost causing a complete collapse but for a bailout by the Bank of England.

Citibank is extremely vulnerable to a 'boycott.' Why? Their capital structure is under extreme strain as a result of the subprime exposure and their bad loan decisions. The 4Q write-down is estimated (http://www.newsday.com/business/ny-bzbank285516510dec28,0,2331525.story) at $19B. They may collapse as a result of a bank run.

They have instituted (http://www.dailyreckoning.com.au/citibank-trouble/2008/01/07/) extremely restrictive wire transfer limits and ATM cash withdrawal limits. Obviously, the easiest way to hoard capital is by not allowing one's customers to withdraw it. Greedy fingered bankers.

If we were to email our contact list of friends and family and warn them of Citibank's situation, that a massive boycott because of the Fox forum debacle and huge withdrawal of all assets from Citibank is being organized online and that Citibank may collapse as a result, leaving them in a very bad situation, then we may be able to spark a run on Citibank and push Citibank over the cliff.

As always, the first rule of panic is to do it before everyone else. I have no material assets left in Citibank.

For the safety of all of you reading this I recommend you withdrawal all your assets from Citibank ASAP because their capital structure is under extreme strain and if there are large withdrawals of assets Citibank may collapse. Get your money while you still can. :eek:

01-08-2008, 02:14 AM
I agree. I have been watching Citi for other reasons recently and they are certainly in a world of a mess. It would not take much to put them in a seriously bad position - which would result in the Federal Govt stepping in -- which would be a good example of what is to come to the public.

I personally have converted everything -- *EVERYTHING* out of all investments except for hard metals.

When it comes it is going to come hard and fast with little warning. People are not going to know what hit them.

01-08-2008, 02:33 AM

"Citibank has 292% of its capital exposed" to derivative bets.

01-08-2008, 05:36 AM
Wow! Look at their stock! Lost 40% in the last three months!

Huh. One of their former top execs used to be the Prime Minister of Pakistan.

Indy Vidual
01-08-2008, 05:46 AM
We are coming dangerously close to a money panic.

Few Wall Street analysts are talking about this in public. Fewer still understand its potential consequences. Many don't even know what a money panic is. But historians do. They realize that...

...A money panic is a stampede from greed to fear, risk to safety, buying to selling. Once set into motion, it can spin out of control, feeding on itself, wrecking havoc in financial markets.

Dangerously Close to a Money Panic (http://www.moneyandmarkets.com/issues.aspx?Dangerously-Close-to-a-Money-Panic)

Yes, Citibank has 292% of its capital exposed to to derivative bets. :eek: :eek: :eek:


ps. "How does Ron stay so calm?" (http://www.ronpaulforums.com/showthread.php?t=79720) ;)

01-08-2008, 06:00 AM
Here's what was said over at LeMetropoleCafe.com (a pro-gold website):

Here's an excerpted piece on Citibank from The Daily Reckoning Australia by Dan Denning in Melbourne. January 7, 2008.

If you know anyone with money in Citibank you might consider sending them this for their perusal. They might want to reconsider whether their money should still be in Citibank. There are plenty of others around, at less risk, more than willing to have more money on their books.

--Here's a story that's flown under the radar. Citibank is in serious trouble. You probably already knew that, given the fact the banks' been begging for billions from SWFs. But did you know that in late December Citibank quietly announced a restriction on wire transfers? The bank told customers that outgoing wire transfers from the banks accounts would be limited to just US$2k per day. Hmmn.

--But wait. There's more. Last week, under the guise of responding to a wave of fraud from automated cash machines, Citi also announced a limit on cash withdrawls from its ATMs in New York City. And you thought the money in your bank account was yours.

--There could be a perfectly reasonable explanation for all of this. But the simplest explanation is almost always the best. Citibank is in desperate need of its capital. The best way to keep your customers money is to prevent them from taking it out of the bank. It's a kind of low-level, mild-mannered capital control.

--How has the Treasury managed the Citi crisis differently than the way the Bank of England managed Northern Rock? And what will the end result be for Citi? Stay tuned.

--Here's the most nonsensical headline of the day: 'Banks face rates dilemma as oil price soars'. "Pressure is growing on the Bank of England for another cut in interest rates next week. Consumers face soaring petrol bills while their spending is being squeezed by higher mortgage payments and rising energy bills," writes Nick Goodway in the Evening Standard.

--Lower interest rates are not going to bring oil prices down, we're pretty sure of that. But the writer notices the problem faced by consumers in the Western world. Energy prices are rising. Interest rates want to rise, increasing the cost of carrying a lot of debt (nearly as popular as oil in the West.)

--The trouble is that the rising oil price is already a result of interest rates that were too low for long. Oil now has a fundamental economic momentum of its own. People everywhere want it. But it's harder to find. And so the price rises. Central bankers can't do much about that, and cutting rates won't make a lick of difference.

--So 2008 begins much as 2007 ended. Investors are whistling past the proverbial grave yard, hoping that 10 years of credit-driven speculation in financial markets will go bust quietly, without any real economic consequences. Oil and gold prices tell us that there are already consequences.

01-08-2008, 07:18 AM
Take it viral, folks. Let's see what this baby can do.

01-08-2008, 10:36 AM
is it good for us if the US economy crashes?

01-08-2008, 11:15 AM
People do strange things during a panic. My guess is they would gravitate to McCain, however, thinking he would make them safe.

01-08-2008, 02:09 PM
is it good for us if the US economy crashes?

That is a very good question. The gold rig is huge and undeniable. It is in conflict with the US Constitution. As the rig evaporates there will be a lot up for grabs all at once. As the dollar continues to collapse we will be posed with two options: Repression or Regeneration. Ron Paul is the only one capable of leading us to Regeneration. If we have our freedoms we can make our wealth back.

I think the sooner the collapse happens the better. Hopefully during the primaries. I think it will take a collapse to wake up a lot of Americans.

Indy Vidual
01-08-2008, 04:45 PM
is it good for us if the US economy crashes?

No, it is not good.
Dr. Paul has told us several times about the real, urgent threat of a major collapse.
IMO, the major collapse is many years overdue, so it is hard to tell when it will happen. I'm not prepared, so things won't be pretty.

Ron offers Hope For America, let's hope he will win. :)

01-08-2008, 04:50 PM
bump . Citibank is *extremely* weak.


01-08-2008, 06:16 PM
I work for Citibank. My job sucks enough as it is. Stock collapse for me equals even more overtime, weekends, no pay raises... You guys suck.

01-08-2008, 06:18 PM

Digg it!

01-08-2008, 06:29 PM
Aw man that sucks. Sorry to hear about your job. I won't short the stock. PM me if you need any help.

01-08-2008, 06:36 PM
Aw man that sucks. Sorry to hear about your job. I won't short the stock. PM me if you need any help.

I wasn't serious with the you guys suck comment, it was more of a .. oh well. I need a new job anyway.

01-09-2008, 03:31 PM
If we were to predict an economic collapse... what would be the best thing to invest in right now? metals/gold?

01-09-2008, 04:21 PM
If we were to predict an economic collapse... what would be the best thing to invest in right now? metals/gold?

The best place to be right now is in cash. That cash needs to be denominated in gold or silver ounces. Here (http://www.runtogold.com) and here (http://www.mygoldmoney.com).

I work for Citibank. My job sucks enough as it is. Stock collapse for me equals even more overtime, weekends, no pay raises... You guys suck.

I in no way intend to harm on you individually. I hope the warning is helpful. It is just Human Action.

This is an interesting quote about slavery by George Mason, a slave owner, at the Constitutional Convention, "As nations can not [sic] be rewarded or punished in the next world they must be in this. By an inevitable chain of causes & effects[,] providence punishes national sins, by national calamities."

Zappa's Brain
01-09-2008, 05:43 PM
Well I too am paying off my Citibank 2nd home loan. I was working on this before the boycott but I will call them and speed up the process for them to see.

The only bad thing is their HQ is here in Sioux Falls, SD where I live and that will destroy our lowest unemployment rate in the country. This is one of the best places to live in the US so CITI better back away from FOX.