Meredith Whitney: The U.S. Has Run Out of Bullets: Video

Meredith Whitney fresh interview With CNBC: The US has run out of bullets.

- the government is running out of ways to help the economy, "I think they're out of bullets,"
- strongly pessimistic about the prospects for recovery.
- concerned with the lack of credit access for consumers (see our previous post today). Core loan book and credit-card loans are very low. How are banks going to make money? Leaves them only with trading...
- banks can borrow at 0% but are not putting it back into the marketplace.
- the solution is for the government to take proactive steps that will give consumers more money to spend. "I don't think you can cut taxes enough to stimulate demand," "For a 2010 prediction, which is so disturbing on so many levels to have so many Americans be kicked out of the financial system and the consequences both political and economic of that, it's a real issue. You can't get around it. This has never happened before in this country."