Sense on Cents

You have heard me sing the praises of those whom I consider to be some of the wisest minds in the financial markets. Included in this group are Nouriel Roubini, Laszlo Birinyi, Sheila Bair, and Meredith Whitney. It is not often that we have the opportunity to hear timely, insightful, and extensive analysis from these individuals. This morning we have one of those opportunities as Meredith Whitney, the TOP bank and financial services analyst on Wall St., is interviewed.

This attached video clip of her interview runs 12 minutes but it is extremely insightful on the current state and future outlook for the following:

1. Consumer Credit….it is going to get MUCH tighter, which is the very reason why we are STRONGLY encouraging people to pay down debt.

2. Outlook for large money center banks….”on life support for the next 18-36 months”

3. AIG….needs more money as they have incurred ANOTHER 10bln loss.

4. Housing prices are expected to decline another 20-25% as the percentage of families owning homes reverts back to the 60-65% range from the app 70% range which resulted from the aggressive and irresponsible mortgage lending.

5. Solutions: Meredith recommends that the government stop allocating capital to the large banks who dominate the consumer credit business and redirect it to the regional banks that are not handicapped by bad positions and can reposition themselves to gain market share in the consumer finance space.

For those who have a credit card, I strongly encourage you to take the 12 minutes and watch this clip.

She is the BEST in the business!!

SEE VIDEO.

This entry was posted on Thursday, December 11th, 2008 at 6:20 AM and is filed under American Consumers, Current Affairs, Economic Stimulus, Economy, Meredith Whitney. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.