Nouriel Roubini March 31 2009 3/31/09 CNBC

Nouriel Roubini, " Dr. Doom, " came on CNBC this morning and gave comments on what he is seeing in the stock market and financial sector. Nouriel Roubini has been calling this meltdown and has been right for 3 years. He has a downside target for the S&P 500 at 600 and believes this is just another bear market rally. Nouriel believes recent lows will be tested again.

Toxic Asset Plan:

- It will work for awhile but its still not going to stop the problem because they might sell assets below value.

- No one knows what the bad assets are worth, some banks will resist selling them at low prices

- It is time for a special insolvency regime for institutions

- Government bears risks after first losses of toxic loans

- If economy gets worse, it could get ugly very quickly

- There is still a wealth transfer taking place

- Still think some banks must fail and get taken over

Light at the end of the tunnel - We are going to avoid a depression - since they are using everything in their power to avoid this ( the bazooka ) - But it's going to be a long way out of this.

We are close to a stock market bottom but this is just another bear market rally. I still see downside risk more then upside risks for the stock market.

I've been right for three years, in my view, this is still a bear market rally. I see the previous lows being tested again. I will be the first to tell you when I see a recovery. You saw the market get pushed down 3-4% on the GM news yesterday. This is a very shaky stock market!!

Housing prices will fall by another 15-20% - Housing market has not bottomed out. I am still much more bearish then consensus.

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Obama Housing Plan 2/18/09 February 2009

President Barack Obama has come out with a housing plan today February 18, 2009. Obama hopes the following plan will help stop foreclosures and help the housing market bottom.

House Affordability and Stability Plan Facts:

Problems:

• Americans who make their payments cannot refinance
• 6 million Americans could face potential foreclosure, due to hours cut or job loss.
• Neighborhood home values are struggling due to forced selling which causes their house value to plummet.

Housing Stability Facts - Main Points

• No Aid for speculators
• Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices
• Plan allows Up to 4 to 5 Million Responsible Homeowners to Refinance:
• Reduces monthly payments
• Interest rate reduction bringing monthly payment down to 31% of income
• Even if you have negative equity ( underwater loans ) you can refinance your loan

Will this plan work? Comment below! See a full fact sheet of this plan Right Here

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Alan Greenspan comments 12/18/08 December 18

Alan Greenspan has come out with some comments today, 12/18/08, on the housing market, banking system, and the stock market

Greenspan says the Banking System needs an additional 250 billion in capital. The Tarp program is working so far but it is not enough.

Alan Greenspan thinks the stock market can recover 6-12 months from today, December 18, 2008.

Greenspan also thinks the housing market can bottom or start to recover by mid 2009.


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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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