Meredith Whitney's star has faded a bit as the almost always up market since March 2009 has taken the shine off of anyone who lives outside the Matrix. Just as in early 2008 [Mar 26, 2008: I'm On Meredith Whitney's Side] - before the stuff really hit the fan - I still generally agree with much of what Meredith says. The market is the market and if one's central bankers and governments flood the world with money you can make any economic figure spin or asset value rise in the near term, to paper over what is underneath. We have not had a sighting in 2010, but this morning Meredith returned to CNBC; there are 2 videos below. Zerohedge gives us a quick text overview; any reader who has been around for more than a few weeks will hear very similar themes to what I espouse month after month. In fact, this is the first time I have heard Whitney talk about the U.S. consumer using their lack of mortgage payment as a crutch for other spending - a theory I first offered in fall 2009 [Nov 25, 2009: America's Stealth Stimulus Plan; Allowing It's Home Owners to be Deadbeats] and is now catching fire as consensus around the financial world.
- A double dip in housing is a certainty
- State economies are plunging, and are $200 billion underwater, will lead to 2 million in state-level layoffs leading to a low-end impact; raising taxes at state level will impact the top-end
- Retail sales have been stronger only due to consumers not paying mortgages, retail sales have already topped as is
- Q2 bank results will finally catch up with accelerated mortgage foreclosures; charge-offs and delinquencies in credit cards are better due to mortgage non-payment cash flow going to other obligations, and this will soon top as well
- Structural employment issues in the US won't get better any time soon.
[Email readers will need to come to site to view]
Video #1 - 10 minutes
Video #2 - 6 minutes
[Dec 8, 2009: Meredith Whitney - U.S. Government Out of Bullets, Consumer in Trouble][Nov 17, 2009: Meredith Whitney Just Plain Confused by the Action][Mar 18, 2009: CNBC - Meredith Whitney's Latest Views][Jan 30, 2009: Meredith Whitney Joins Roubini & Soros in Smothering the Kool Aid][Sep 23, 2008: Meredith Whitney and I Continue to Agree, Bailout or No Bailout][Aug 4, 2008: Meredith Whitney Continues to be Negative on Financials (and Housing)][Mar 26, 2008: I'm on Meredith Whitney's Side]