I feel all of a sudden that common sense has nothing to do with it anymore...yeah it's the stock market and the irrational exuberance. first there's Well's Fargo that starts a rally ending up with the biggest gain in bank stocks in two decades (23% in one day). and all of that not because large profits or a restructuring success but because their profit dropped ONLY with 23%...wow!
then there's another rally today because Citigroup posted ONLY a $2.5bn loss instead of the $3.67 bn estimates...I mean WOW!! ain't that some good news?
then I remember that Citigroup has some $1.1 trillion assets off the books that are just waiting to see some writedowns and come back to the rooster... and I get a cold shiver down the spine.
that gets worse when I read about another disaster lurking in the shadows, the monster sister of Freddie and Fannie...
the fundamentals are still there. and still disastruous, no mather what looking glass you use.