Monday, July 13, 2009

Meredith Whitney sees GS up how much?

Meredith Whitney: The Internet NEVER SLEEPS

Watch about 1 minute into the interview: "The underlying core earnings power of these banks is negligible. Its a crazy positive momentum based on zero fundamentals." Guess when? Two months ago. And Merideth, you haven't changed your macro forecast one iota; you still expect much higher unemployment (13% U3 .vs. in the mid 9s now) and yet you start talking about write-ups, issuing buy calls into stocks that have more than doubled in price with, in your own words, zero fundamentals and negligible earnings power?

Posted by mark wadsworth @ 11:26 PM (672 views)
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One thought on “Meredith Whitney sees GS up how much?

  • Mark, MW made a statement about what the Banks figures will likely look like and how the market is likely to react. She specifically describes it as a short term play based on lack of compeitition for GS (and hand of govt) and for mortgage banks, the helping hand of govt rewarding Refi which will make book value look better. I’m not clear in what way this short terms view contradicts her longer term bearish views.

    For now the fundementals of the banks (in their own right terrible) equate with the fundementals of the Govt/Fed. They are the same thing and anyone betting against that over the past few monthts has been buried, and will continue to be buried for a while yet I suspect. Reflation will not work in bringing back housing or reflating the ecomomy, but it will pump the banks for now, whatever the fundementals.

    If I’m wrong

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