CHESSNOID

Another analyst I like to listen to is Meredith Whitney.  I couldn’t find any more recent videos on her, but this is her forecast for the first quarter of 2010.  She is one of the people who called the banks losses correctly and knew they were cooking the books.

The other good thing about her opinions that I like is she is very specific.  She is not just doing the old fortune telling thing making a general forecast like most economists do.  She is an expert in the banking sector and understands the numbers better than anyone I have seen on TV.

CNBC, 12/08/09, Meredith Whitney, Crap will hit the fan in the first quarter of 2010

I appreciate  the fact she recognizes that nothing has changed fundamentally in the last year.  The banks are not stronger nor are they managed better.  Foreclosures are still being added to the inventory faster than they can be resold and unemployment will continue to stay in the double digits. Her previous examples of tight credit with credit cards like American Express, Discover, Visa and MasterCard all reducing credit lines or closing accounts will have long term negative effects.  When she says the banks are better fundamentally, then I think we will be in a true recovery.  For her to remain bearish is very telling.