Meredith Whitney: 2009 Worse For Banks Than 2008

Enjoy your bank stock rally!

Meredith Whitney told CNBC this morning that 2009 will prove to be a worse year than 2008. The basic problem, she says, is that credit continues to flow, unabated, out of the system. The upshot: “Breakups and M&As on a grand scale.”

Her advice to Washington policymakers: Focus on the small community lenders that can invigorate new businesses and forget about the “gobbledygook banks” we’re propping up today.

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