Meredith Whitney On Blomberg Said We Are Not Near The Bottom

Q: of financial mess. Hope Monday the financials can retest the lows of March. We all know we haven't hit bottom, but with Geithner on tv almost daily spewing crap, faz is slowing tanking, I hope it does test March lows cause this is bull that they manipulate the market so much

A: The market as a whole isn't the financials. The financials were beaten down badly, the baby was thrown out with the bath water, we saw financials being valued UNDER book. That didn't happen with any sector the way it did with financials. So no suprise, the most beaten down leads the way in gains out of the rally. The earnings have shown that the by and large the financials will not collapse or go bankrupt. The market might fall or go sideways while the financials continue to edge higher. There has to be a catalyst that sends them lower again. Credit cards, unemployment, commercial real estate and loans, foreclsures, etc. How's this for a catalyst....... http://money.cnn.com/2009/04/24/news/companies/bank_failure/?postvers... Here are a couple of questions: How did tech do after 2000-2003? How did the banks/financials do after 1990's S&L collapse? What makes anyone think that the financials will do any better than the sectors that caused the bubbles in the last few recessions? Other than us, the taxpayers bailing them all out, what is really going to bring them any kind of sustainable positive growth? I think the American people have been screwed enough that they will not turn around and spend on credit the way they used to- The growth is over for the banks & credit card companies. Everyone who has money is hunkering down, everyone who does not is walking away from their debt, filing for bancruptcy or waiting for a bail out.....

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