Meredith Whitney on CNBC – Liquidity Problems and Double Dip Ahead

We’ve posted some of Meredith Whitney’s comments before. She’s been way in front of the banking problems, and called the liquidity problems that ended up plaguing Citibank and other financials.

She was on CNBC back in April and started to warm up to equities and financials again. She was right. Now she’s back on and warning of trouble ahead as wholesale acquisition of debt by the government starts to slow. We posted back in August on our sentiment on the threat the government stopping its agency debt purchases have to the market. So far they’ve extended the program, extended tax credits, but all of this will have to come to an end sooner or later, and when they do rates will rise.

Anyhow, here’s the video…




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Comments

Joshua November 18, 2009

interest will be over 6% (100+ bps increase) for residential right around the end of 1Q2010. gotta love it. dont forget that 100 bps increase in interest rates equals a 796 bps decrease in purchasing power. thats good news for the recently slightly reinflated housing prices!

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