This morning on BNN a commentator brought up the fact that Citigroup raising $7 billion through equity amounts to a third of the companies book value, and an incredible dilution.

Truth is, it is just postponing the fall of this stock -it can't possibly be as profitable as in the past with that many new shares (or whatever form of debt it is). So it will probably fall over a period of time, or at least flatline for a lot of years. It just means that shareholders will lose over a more gradual period of time. Why are so many people putting such a positive spin on this? I like Puplava's answer: Denial.

Gold will go up.  So will this stock.

MR