Thursday, 6 November 2008

Whitney on the Future of Financials

I've posted about Meredith Whitney a number of times. She's been out in front of the problems facing the major banks for more than a year now. She talks commmon sense backed up by facts and as the finaical crisis has played out she has been vindicated in her views and I implore readers to listen to what she has to say in the interview below.

Future of Financials
Future of Financials

Amongst other things she says:

  • Securitization market is not coming back.

  • Pullback in credit extension to consumers like we've never seen before.

  • Unemployment could approach double digit levels.

  • Wall Street analysts are anywhere from 30% - 70% higher than her forecasts for the banks and she thinks she is on the high side.

  • Banks will come back to the market for more capital.

  • More dividend cuts.

  • Citibank will go to single digits.

  • Well worth a watch.