Citi Memo is not a Game Changer

The memo from City CEO did not fundamentally change my outlook on stocks. I think we all knew that Citi would be a viable company if it weren't sitting on large amount of assets that keep loosing value. But nevertheless, the rally in credit markets was more than welcome. Stocks turned mixed yesterday afternoon. The stock market is still mixed. There is no real conviction among buyers at this point. It doesn't look like the rally will have much of a follow-through.

However, there is an easy way to change the game. All we need is a memo from Geithner to bank creditors telling them he will not ask them to take a haircut. Just one memo will do.