Meredith Says Banks Outlook Is Grim!

Here's someone to listen to!

Posted on CNBC:

• Influential bank analyst Meredith Whitney remains bearish about the economy, and her outlook for the banks that "lubricate the economy" is grim.
  
  "The big banks are going to be on life support for at least 18 months, if not 36 months,"
  
  Oppenheimer's executive director of equity research told CNBC Wednesday morning. "The big banks will not fail, but the big banks will not grow, in my opinion, for at least another two years."
  
  She echoed other analysts who see the funds from the TARP program being used to fill holes, and do nothing to stimulate the economy.
  
  "You've had massive asset deflation," she said. "There's more of this to come."
  
  
• And that, she said Wednesday, is the next major trauma in the credit crisis.

• "Just over 70 percent of American households have credit cards, but over 90 percent of those households revolve at least one time a year, so they're using it as a cash flow management vehicle," she explained. "The banks now are starting to cut those lines back. That will impact spending."
  

Source: http://www.cnbc.com/id/28155366