(Courtesy of Greg Hunter of www.USAWatchdog.com)
I was pulling up to a store yesterday in my car, listening to CNBC on XM Radio, when an interview with banking analyst Meredith Whitney came on. I shut the car off and listened because, over the years, I have learned when Whitney talks, everybody should pay attention. There are only two reasons why I think this way: (1) Whitney has a track record of many good calls on the economy and banking. (2) Her predictions are usually spot on.
For those of you who are not familiar with Ms. Whitney, in November of 2007, she first raised the specter that Citigroup might have to cut its dividend because of losses in mortgage backed securities. At the time, Citigroup stock was trading for around $50 a share, and everybody looked at her like she had two heads. Whitney never backed off that call in her many interviews in the months that followed. Citigroup, of course, did cut the dividend and almost went bankrupt. The stock now sells for less than 4 bucks a share.
In June of this year, when everybody in the mainstream media was still hyping “Green Shoots” and the so-called “Recovery,” Whitney predicted on CNBC, “Unequivocally, I see a double-dip in housing. There’s no doubt about it . . . prices are going down again.” Bang!–another direct hit. I wrote about this in a post called “Double Dips Coming Everywhere.”