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