Obama is done fixing Citigroup, time to invest!
According to the Financial Times (FT.com) the government just finished selling its stake in Citigroup.
The share price of Citigroup stock plummeted because the company was not worth nearly as much as it said it was on its balance sheet. The main reason for this was that the assets that Citigroup said it had turned out to be bad assets. At this point, no one should have invested in Citigroup.
What happened next? Obama jumped in and bailed the company out. Citigroup is now financially stable after the nice injection of cash from the US government. However, the share price has not increased as much as it should have. Why? Because people are still scared of Citigroup stock.
As the great Warren Buffet said, "Be greedy when others are fearful, and fearful when others are greedy."
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