CHESSNOID

I think this Meredith Whitney video explains why banks will still continue to go down.  It makes sense and I think will forecast where the economy is going in the next couple of years.  She talks about fundamentals of why the banks will continue to go down.

Here is the CNBC video of Meredith Whitney.

If you aren’t familiar with Whitney, she is the financial guru who had x-ray vision and could see right through the banks’ lies last year before they started to plummet.  She knew by their balance sheets that they were headed for incredible losses due to the giant write downs coming down.  When she announced this, she was alone in her assessment as an analyst and others discounted her opinion at first, but she became very  popular in the financial world once the banks started announcing their losses.

Her assessment was so unbelievable at the time it seemed impossible.  Right now bank stocks look cheap and she says they will be lucky to survive this economic environment.  I was actually considering buying bank stocks because they are so cheap, but that was before Paulson announced they were buying stakes in banks.  He has been wrong about the bailouts and everything he touches turns into crap, so I don’t want to follow in his footsteps.

What does surprise me is the down day yesterday in the stock market. I really thought we would have a relief rally after finding out who the president would be instead of the 500 point loss yesterday. Even today there is follow through with yesterday’s down day. Very odd indeed!