Posted on 05/17/2010 2:50:36 PM PDT by TigerLikesRooster
Investors Should Avoid Banks 'At All Costs': Meredith Whitney
Posted By: Krystina Gustafson | Special to CNBC.com
CNBC.com
| 17 May 2010 | 04:53 PM ET
Investors should "avoid financials at all costs, particularly in the banking sector" because the Senate's financial reform bill will end up restricting credit and hurt bank earnings, well-known banking analyst Meredith Whitney told CNBC.
"Politicians have proven far worse than our worst expectations," she said in an interview. "It could be very bad for banks."
Whitney cited two new credit card rules in the Senate bill as particularly onerous. One would force banks to comply with individual state caps on credit card interest rates. The other would regulate how much credit card issuers could charge merchants for using their cards.
(Excerpt) Read more at cnbc.com ...
P!
“One would force banks to comply with individual state caps on credit card interest rates.”
I got no problem with state usury laws. I know my buddy Guido has no problem with it either
When corrupt and incompetent politicians are in charge why would anyone expect positive results from any legislation?
Obama and the Democrats want the public sector to control and usurp the private sector. Period.
Meredith Whitney is short the banks. She is always trying to talk them down. We have all heard her rant a hundred times now. Blah blah blah blah blah...
I guess we'll find out soon enough if she is a one trick pony..
She has predicted 173 of the last 1 banking collapses. Just like Roubini. If you folllowed her (or his) advice you’d be broke before any of your bets would pay off. Phewey to both of them.
I’m tellin’ ya...The Vice Fund is a good place to make some cash these days. It’s on the up-tick right now. The LAST things people will give up in Tough Times are gambling, liquor and their smokes. As a bonus, you can invest in defense, too!
http://www.usamutuals.com/vicefund/abt.aspx
Paying almost 8%/yr. Not too shabby these days!
Article from 2009, but still timely:
I don't follow her all that closely. Do you have any examples of badly missed calls?
I don’t follow her at all, she follows me. Every other day she’s on CNBC, Bloomberg, Fox Biz, WSJ, or some other business news outlet - I can’t get away from her... like she’s stalking me or something...
I didn’t say she was wrong - regardless of what someone predicts, unless they stick their necks out and give a near time frame, they can’t help but eventually end up being right. Such it is with her, it’s not that her calls are a “miss” as they are impossible to prove wrong. Thus her usual calls should be described as something more like “disingenuous” rather than flat out “wrong”.
Banks will probably dip today on Whitney’s comments, and she’ll probably be out there buying. Why would I trust her any more than I would trust Lloyd Blankfein? I’d like to see HER investigated by the SEC...
That being said, the finreg that seems to be moving through the Senate looks very bad for the banks, and the unavoidable unintended consequences that will ripple through the US economy. Of course this Administration and its henchmen in Congress seem to be on a demon-possessed anti-business rampage to destroy America’s ability to create, compete & grow - and finreg is a part of that campaign so I agree with her on all of that.
But we all figured that out long ago without Meredith Whitney’s help...
I hit the mute button when I can't take it anymore
LOL
I saw this morning that Paulson is buying BAC and Soros is buying JPM.
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