Meredith Whitney CNBC 3/10/09 March 10, 2009

Meredith Whitney was on cnbc this afternoon( March 10, 2009 ) and gave her comments on the current financial crisis.

- Credit Cards will be the next credit crunch
- At least 2 trillion of credit card lines to be cut by 2010
- Bank credit card portfolios will not be profitable in 2009, might even lose money

Would you be buying the bank stocks right now?

- Goldman Sachs ( GS ) in the $70's yes, $100's no
- There is a trade here, but a trade alone...I think you could probably make money getting long some of these stocks. We will have to see what they do as far a mark to market in April.

Citigroup ( C ) - they don't make money in any of their businesses - you see Citi up 28% today but its only $0.28 cents. I am skeptical of these relief rallies.
Citi will be forced to sell their crown jewels

Mark to Market accounting

The damage is already done....if the market comes back, they don't get the benefit to write their assets back up. Mark to market doesn't really matter right now.

TALF - Is TALF going to be enough? They are trying to entice the private sector to come back into the market, private capital has to have sweet terms to get back into the stock market.

With these bank stocks - you could see them go up on earnings in the first quarter because of a head fake on the mortgage moratorium.

View all of Meredith Whitney's comments right here.

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