Meredith Whitney CNBC 7/13/09 July 13 2009

Meredith Whitney was on CNBC this morning ( July 13, 2009 ) and gave her comments on the current financial crisis and why she upgraded Goldman Sachs Group Inc. (GS).

Earnings Season

It's all different...For Goldman Sachs, its a bearish call but a bullish call on the stock. The next few years GS will make a lot of money on debt market securities. They will report a monster quarter tomorrow and I upped the price target to $186 per share.

Things aren't improving for the banks but their net tangible book value is improving so you don't want to be shorting some of these banks going into earnings.

Bank of America Corporation ( BAC ) is the cheapest as far as the tangible book value is concerned. You could see a 15% move higher in value in these shares.

I think in some of these financials, you could see a 15% move, then a flat lined period followed by another leg down.

JPMorgan Chase & Co. (JPM) - JP Morgan will do well with investment banking, JPM earnings will be a great preview to Bank of America's earnings report.

Bank of America ( BAC ) - Will have a monster mortgage quarter. BAC is one the the cheapest banks out there.

Citigroup Inc (C:NYSE) - What matters with Citigroup is the dilation, not many people are focused on Citigroup stock this quarter.

Unemployment: Unemployment could be 13% by 2010-2011.....i'm not ready to go 14% just yet....this is what happens when we buy time but don't restructure the banks, economy. This is a scary situation!

Bank Stress Test: As for the bank stress test, it WAS NOT so stressful!


View all of Meredith Whitney's comments right here.

the latest updates on the stock market, visit, http://daytradingstockblog.blogspot.com/ or Subscribe for Free