Meredith Whitney Opines On Banks & The Credit Markets
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Meredith Whitney is appearing as a guest host on Squawk Box this morning and below are some of Meredith's thoughts on the banks and credit markets.
- We need solutions now and worry about regulatory changes later.
- Whitney said smaller banks have to grow their originations.
- Meredith said mark-to-market won't solve the problem.
- Banks will start to assets sell off, bringing asset values down, but less bad stuff will be left on banks' balance sheets.
- Whitney doesn't think this year will be any different than last year.
- She says supercharge smaller, local banks so they can lend out to the end market. Insert non-punitive capital into smaller banks that have healthy balance sheets. She thinks that could help move the market. Meredith Whitney said, "Centralized lending is dead as we know it."
- She expects many people who use credit to go in default and deliquencies will only increase.
- Lenders are pulling credit because they don't want to be the last one stuck with outstanding loans.
- Consumer credit continues to shrink faster than many have speculated.
- She said banks are not investable until these banks get some earnings momentum.
- Meredith Whitney believes the stocks of big banks will drop due to lack of growing earnings.
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Who's been right....
My very short list of people who have called the housing and banking bust as well as its implications for the US & global economy includes in no particular order: Meredith Whitney, Nouriel Roubini, Simon Johnson, and Robert Shiller (re real estate). There may be others who were prescient, but I can't think of any. Other nominees??
Whitney
I've been making a list and checking more than twice. There are 12 people on the Planet that I know of who have been right about the credit markets and the direction (implosion) of the economy. Meredith is one of them. She called it a while back as well, so she's not some Jane-come-lately. Beauty and brains. The ultimate combination. Her husband is one lucky man, and the rest of us who listen to who are as well. Just not quite as lucky. :)
she's right
she must be right because Get'erdone Gethiner isn't taking any of her advice. am short CDN financials because they lack future earnings growth just like in the U.S.
Whitney
Elaine Garzelli was Queen for a Day back in the old days. I hope Whitney's reign last longer.
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You Forgot John Paulson of Paulson & Co
Re: Terry on Mar 17, 2009 10:13 PMhe was one of the even smaller handful that made money on the madness.