Meredith Whitney: "I Haven't Been This Bearish In A Year"

Oof. Financials are taking a hit after Meredith Whitney told CNBC that she “hasn’t been this bearish in a year.”

She’s also calling for a “double dip” recession.

StreetInsider bullet-points her comments:

  • the banking sector is “not adequately capitalised today”
  • sees another leg down in the residential real estate market when mortgage rates/prices begin moving lower. To this point, Meredith said she feels that there is still a much bigger risk related to residential mortgage exposure, rather than commercial.
  • says that this market makes “no sense” to her and that there is no fundamentals behind the recent rally in stocks
  • within the banking sector the major difference between the market today and last year is that there is no mark-to-market now.
  • “banks will go back to tangible book value”
  • sell the banks


  • would sit on cash until another leg down in valuation, estimates
  • “everything’s expensive right now”
  • expecting a double dip recession, although the second part of “W” will not be as severe

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