Citigroup is now up 10% from its Monday close on news that the government might sell its stake. At current prices the government's stake is worth about $30 billion. In Decmeber, Citigroup's stock sank over 20% when Citigroup raised $20 billion in equity to pay back TARP. This offering would be even larger.
Why so many people would be so eager to step in front of the largest offering of stock ever is beyond me? The government's shares are locked up until the end of March, so the insanity could continue until then. After that the bulls might just get what they are hoping for, but it won't be pretty.