Meredith Whitney, Oppenheimer's influential bank analyst appeared on CNBC to discuss what she says is a "grim" outlook for banks and spending. Click on the image below for the whole interview:
Here are some excerpts from the interview:
"The big banks are going to be on life support for at least 18 months, if not 36 months," said Whitney. "The big banks will not fail, but the big banks will not grow, in my opinion, for at least another two years."
She commented that TARP is being used to "fill holes," but does nothing to stimulate the economy.
"You've had massive asset deflation," she said. "There's more of this to come."
"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."
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