Meredith Whitney - woman who predicted the crunch - Not a nice read

harbinger13

http://money.cnn.com/2008/08/04/news/newsmakers/whitney_oppenheimer.fortune/


Not a nice read for many. Salient points

- Banks have to cut more staff upto 25% - currently 7% out
- Crunch to continue

- Married to a Pro Wrestler - WWF!! Beauty-Brain-Brawn

Meredith is known to be pessimistic http://en.wikipedia.org/wiki/Meredith_Whitney

harbinger13

http://www.moneyweek.com/personal-finance/why-you-should-never-rent-a-washer-dryer-36307.aspx

This is unrelated but funny article - why you should not rent a hand bag!

justpurchased

harbinger13 wrote: »

http://money.cnn.com/2008/08/04/news/newsmakers/whitney_oppenheimer.fortune/
- Banks have to cut more staff upto 25% - currently 7% out
- Crunch to continue

- Married to a Pro Wrestler - WWF!! Beauty-Brain-Brawn

banks cut staff when not as busy and losing money! No way!
Crunch to continue in america! No Way!
Married to a pro wrestler! does that make any difference!.
try www.idonotliveinytheusa.com
or www.nostradamusdidpredictions.com

dudleyboy

She also argues that banks need to "get real" about how they're valuing their problem mortgage-related debt, much as Merrill Lynch has now done. Merrill recently sold a large package of toxic mortgage debt for just 22 cents on the dollar.

Whitney's idea of "real" is pretty drastic. Whereas most banks are estimating 20% to 25% peak-to-trough declines in housing prices, the Case-Shiller housing futures traded on the Chicago Mercantile Exchange portend a much steeper 33% decline, she points out.

In fact, Whitney thinks the actual declines will be worse - closer to 40% - because of the loss of the securitization market and the paucity of mortgage credit available. And that means more defaults: "The consumer's ability to refinance his way out of trouble has diminished greatly."

:whistle: .

dopester

She is right, but something bugs me about her. Maybe I think she gets too much credit for riding on some clear analytical outcomes - although ones which her colleagues didn't dare call. Come last October things had been unravelling in the US for months, the signals were clear and obvious we'd reached the ceiling, and the system would have to undergo severe adjustments.

And WTH has she got a dead zebra on her wall for?

dopester

harbinger13 wrote: »

http://www.moneyweek.com/personal-finance/why-you-should-never-rent-a-washer-dryer-36307.aspx

This is unrelated but funny article - why you should not rent a hand bag!

Merryn Somerset Webb on the other hand is the tops !

Don't worry about us Merryn as I bought Miele for quality and to last.

oldMcDonald

dopester wrote: »

And WTH has she got a dead zebra on her wall for?

Ewww, that's horrid! It looks like some sort of squashed road kill stuck to her wall.

WTF?_2

dopester wrote: »

She is right, but something bugs me about her. Maybe I think she gets too much credit for riding on some clear analytical outcomes - although ones which her colleagues didn't dare call. Come last October things had been unravelling in the US for months, the signals were clear and obvious we'd reached the ceiling, and the system would have to undergo severe adjustments.

And WTH has she got a dead zebra on her wall for?

At least she had the courage to call them.

For too long no analysts would dare break ranks and speak the obvious. It really is quite worrying to see that sort of peer pressure is predominant in the business world.

Those people are juggling with the financial lives of billions of people who will suffer from the knock-on effects of their poor decision making.

Pobby

Well I don`t need to break ranks and I was reminded that I predicted the credit crunch a year before it happened. Can`t remember that myself but i will say that i predicted ``tears before bed time`` as far back as the start of the decade.

Jumping_Bean

"Citibank has lost 50% of its book value since last year," says Whitney, who is married to pro wrestler John Layfield.

What a bizarre thing to tag on the end of a statement. The only reason I can see for doing that would be to make her seem less credible?

seraphina

Jumping_Bean wrote: »

"Citibank has lost 50% of its book value since last year," says Whitney, who is married to pro wrestler John Layfield.

What a bizarre thing to tag on the end of a statement. The only reason I can see for doing that would be to make her seem less credible?

The press still seem incapable of taking professional women seriously as professionals. Almost any article about professional women will make a point of mentioning their maritial status, number of kids, whether they are the supermum or rich-successful-never-dreamt-of-having-kids stereotype.

I mean, come on, how many times has a report gone "Mervyn King, happily married father of two" or "Blanchflower, divorced and 43.."

Disclaimer - I have no idea how many kids Mervyn King has, whether he is married or not or how old Blanchflower is, or whether he's divorced!:rotfl: