In my economics update, I mentioned that Citi was selling about $12 billion in loans to private equity firms at a loss.

Well, I did nor realize the potential significance, but on the way to pick up a Mama Leah’s pizza^* (deep dish), I heard heard listening to the radio, and they were giving high 5s about it on Marketplace.

They think that it might presage an unfreezing of the credit markets, because the banks have finally been able to sell some of that illiquid paper, though in this case it looks like Citi will be getting somewhat less than 90¢ on the dollar.

While Citi took the proverbial haircut on this, that is still better than what it was previously listed at on their balance sheet.

Only on Wall Street is a loss of somewhere in the neighborhood of $1½ billion considered good news.

Personally, I think that mortgage backed paper is still too uncertain, and there are so many balls in the air as a function of the extraordinary levels of leverage that it does not mean much.

But I’m a bear by inclination, and my record on predictions sucks like a thousand Hoovers all going at once.

^*Best Kosher ‘Za in Ballmur.