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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Meredith Whitney CNBC 12/10/08 - December 10

Meredith Whitney from Oppenheimer was on CNBC 12/10/08, and gave her comments on where she stands on the credit crisis and the housing market.

Meredith, what are your current fears? I fear the consumer has not been a part of what happened to wall street and the massive liquidity problem that has gone on with the banks. Consumers now risk losing their jobs, having liquidity withdrawn because of the problem. Banks will start to cut credit card lines and some consumers will be not be able to get credit cards and this will cut consumer spending in a big way. As you know, the consumer fuels our economy.

Financials ( BIG BANKS ) will be on life support for the next 18-36 months, they won't fail but they won't grow for the next two years. These banks are getting diluted and it doesn't help shareholders.

Asset prices continue to go lower, 5 banks are funding 2/3rds of mortgage market.

I am Expecting home prices to fall another 20%, homeowner rates will get cut back to 65%.

Is there anything we can do? We have to have big banks to survive for a confidence point of view. We have to have money help the regional banks to get money flowing through the system. I don't think there is anything you can do for the mortgage market however. The housing market problem is to big to fix. This is not an apocalyptic situation however, because housing prices doubled since 2000 so a 40% correction has just put many people in a bad situation. It does affect new buyers because they don't want to buy a house if they fear it will be worth less in a few months.

View all of Meredith Whitney's comments right here.

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