Some Sobering Thoughts on Citigroup

This is some interesting findings about Citigroup coming clean about the effects of the credit mess on their bottom line earlier in the week. This is in regards to them boosting their credit card loss reserves just in case the consumer credit market goes to hell. If credit card delinquencies start to get really bad we may see some serious pain out there form the retailers on down.

While I will readily accept that Citigroup and others in the industry
have come clean on the earnings impacts of August’s credit market
“thunderstorm”, I firmly believe that the deterioration in consumer credit is
just beginning. And when you combine that with the heightened leverage and “hot
money” funding that most of the major financial institutions have come to rely
on, I find it difficult, based on Citigroup’s own words, to believe that the
whole storm has passed.