Will Citi see another week?

I was tempted to write ‘Will Citi see another dawn?’ but I think we can be a bit more optimistic than that here. However, the bad news isn’t just the decline that we have seen over last two days, it is what lies ahead. If nothing else, this doesn’t bode well-

Most institutional investors and pension funds are barred from owning stocks below $5. So if Citigroup’s stock remains below that level, it could trigger a wave of selling that would send the share price even lower.

“That’s the danger of crossing that $5 threshold,” says Owen Malcolm, senior vice president of Sanders Financial Management in Atlanta. “They’re (Citigroup) already in trouble. It could get worse.”

Hm, if the giant falls, it wouldn’t go quietly and the tremors would trigger another round of collapses. What a nightmare – that spooky skyline of Manhattan seems to be converting gradually to an army of corpses. It is the skyline that Ayn Rand hailed one day in her vision of capitalism; so, what has changed today? Some say the greedy Govt. shouldn’t have interfered with free markets and some say that this is the end product of capitalism. The world seems to be looking for a balance that might not exist.