Meredith Whitney on CNBC

November 12th, 2010

Meredith Whitney Speaks Out On Political Gridlock, The Crisis In New Jersey, And The Never-Ending Mortgage Crisis

Watch Video Here

Joe Weisenthal | Nov. 11, 2010, 4:23 PM

Meredith Whitney on CNBC is talking about her big issue, state governments, again.

The states where she’s warning of huge trouble:

* New Jersey — the nominal numbers aren’t so huge, but relative to GDP its enormous.
* California — part of its huge problem is that the political system is so screwed up, the government can’t easily make changes.
* Illinois and Georgia also in a lot of trouble.

As for the level at DC: “Gridlock can put our economy in a very bad state.”

As for mortgages, she thinks the putback/misrepresentation issue could still be very bad.

On QE2: There’s so much market expectation for this, there’s no way it can deliver. It’s complicated and dangerous.

This year there will be another leg down in housing, which is a reason banks shouldn’t be too aggressive about hiking dividends.