Meredith Whitney may not be ahead of the curve on this — folks have been warning about this for a while — but it’s significant that one of the most visible analysts on the street is warning about the economic health of the states and the systemic risk they pose to the economy.
She predicts they’ll need bailouts, but not sure they’re really going to happen, given that it would require conservatives in states like Texas and Nebraska to vote for money to California and Michigan. Seems implausible.e
She’s also warning of major risk to the banks after this quarter, as housing weakens again. She sees 80,000 in Wall Street layoffs.
Who does she like? Visa and Mastercard, she says, have been unfairly punished following financial regulations, and she predicts that their duopoly will survive.
We’ll have her full video from CNBC when it’s available.
Here’s the video.
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