No Faith in Citigroup

As always, it is Citigroup (C - commentary - Cramer's Take). My smartest guys tell me that Citigroup has billions in assets it can sell, that there is ample opportunity for the company to reliquify, that Vikram Pandit has things under control and the slow bleed cuts are going to work to get costs down.

Now I have total confidence in Treasury, particularly in Bob Steel, to take care of the shorts and to create brilliant shotgun marriages that reward the rich banks and punish the poor.

BUT, I have no faith in Citigroup, which because of the moronic acquisitions and bizarre off-balance-sheet liabilities may technically be insolvent. When you consider it is too big to fail, you have to begin to wonder -- what's the plan if it can't make it? How far can forbearance go? Will we tolerate this bank being majority-owned by the sheiks or the communist Chinese? Seems far-fetched, but when I read Meredith Whitney's words this morning over at OPCO I know that the losses are going to be too big for the current base of capital.

This note could not have come at a worse time, because now that Bear (BSC - commentary - Cramer's Take) is done, the shorts are going to refocus their prey, and I was hoping it was going to be on Washington Mutual (WM - commentary - Cramer's Take), which can be swallowed by Wells Fargo (WFC - commentary - Cramer's Take) or HSBC (HBC - commentary - Cramer's Take), and not Citigroup, which cannot be swallowed by anyone without choking.

Here's the thing: After the criticism that I have received for saying that it was safe to keep your money at Bear but not to own the stock, maybe I should say it is unsafe to have either when it comes to Citigroup, so I can be irresponsible on the deposit side so I don't confuse those who believe that I say the equity is safe.

When it comes to Citigroup, I simply think there are a thousand financials that I would rather own than this one and it remains my favorite short in this group after its pathetic run-up.

Random musings: We are overbought, tomorrow morning is the end of markup season. Take things off.

At the time of publication, Cramer had no positions in the stocks mentioned.

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