Meredith Whitney CNBC 11/05/08 - Citigroup C

Meredith Whitney was on CNBC today, 11/05/08 ( November 5th, 2008 ) Here are some of her comments:

Financials and Economy are so far off the tracks right now....

Where are we in the Financial Sector?

We are in a new part of the cycle, going forward, there will be contraction in the overall mortgage market - credit card lines are going to shrink, credit will be taken away from companies, we've never seen this before, also we have an economy that is not doing good right now. Earnings estimates on Wall Street are still to high.

How much is priced in?

Citigroup ( C ), Wells Fargo ( WFC ), Bank of America ( BAC ), JP Morgan ( JPM ), I think these companies still have further down to go, we are in for a rude awakening, I see a slow grind down for these stocks. I think Citigroup goes into the single digits. The stock prices in the financial sector are still way to high, wait for lower prices.

Meredith warned people in August before this whole downturn, so I always find what she has to say interesting. She called this financial crisis before anyone about a year ago....she has even received death threats, but she has been right!


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