Tuesday, May 18, 2010

Latest Meredith Whitney Predictions: Rest of 2010 WiIl Be Very Bleak for Stocks

Meredith Whitney was on CNBC yesterday. She says she is very concerned with the bank regulations being pushed forward and that it will ultimately punish small businesses by curbing lending even more, in her words: "just at the time when you need more liquidity".

"I think you will see at least another $1.3 trillion sucked out of the system".

On jobs and unemployment: "There is no way to resolve this. ... We are going to have a really dangerous, chronically high unemployment situation on our hands for a very long time".

Asked if she would invest in Europe (banks): "Not in a million years. The European banks are still underfunded, still carry assets that are worse marked than even the US banks. You have hundreds of billions of dollars of recaps that need to take place in Europe".

For the stock markets for the rest of 2010: "I think it's going to be bleak. I think that you have really no end demand from the consumer. I think you are going to see the double dip in housing take place in the second half and it's going to be rocky sledding".


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