Update:Market Mover: Meredith Whitney – Home Prices may fall another 25%…

Update: Second video clip courtesy CNBC, this has the money quote on the coming second leg down in home prices..

Vodpod videos no longer available.

“There’s no doubt that home prices go down dramatically from here,” Meredith Whitney, of the Whitney Advisory Group, told CNBC

Meredith Whitney is IMO the best financial analyst on the street…

Vodpod videos no longer available.

more about “Market Mover: Meredith Whitney – Home…“, posted with vodpod

CNBC:

Home prices in the US could fall by another 25 percent because of high unemployment and another leg down will come for stocks, banking analyst Meredith Whitney told CNBC Thursday.

“No bank underwrote a loan with 10 percent unemployment on the horizon,” Whitney said. “I think there is no doubt that home prices will go down dramatically from here, it’s just a question of when.”

Local governments and states are chronically under-funded and “most states are under water,” adding to the problem of low private consumption, she said.

“If you look at the drivers for unemployment I don’t see that reversing very soon,” Whitney said.

If consumers were to decide to spend, “that would be a game-changer,” but it would be an unnatural thing to do in a recession, she said.

“A lot of themes are constant, which is the US consumer and the small business doesn’t have any credit, credit is still contracting,” Whitney said.

Consumer debt and consumer credit have dropped according to the latest figures which also show that people have been spending more from their debit cards than from their credit cards.

“Obviously that doesn’t bode well for spending,” Whitney said….

Weekly Jobless claims slightly lower, long term unemployment continues to drop as people lose bennies, trade deficit widens:

The number of U.S. workers filing new claims for jobless benefits fell last week to 550,000, according to a government report on Thursday that also showed the number of those collecting long-term aid tumbled.

Analysts polled by Reuters had expected initial claims to drop to 560,000, after reaching 576,000 the prior week, which had previously been reported as 570,000.Continued claims fell to 6.088 million in the week ended Aug. 29, the latest for which the data is available, from 6.247 million the prior week. That was the lowest level since the week ended April 4.

…Although the drop in jobless claims indicates a healthier labor market, “we haven’t seen hirings pick up yet. We might have the worst of the firings over but the companies are not confidant enough in hiring,” said John Canally, economist at LPL Financial in Boston.

Meanwhile, a separate report showed that the U.S. trade deficit widened the most in more than 10 years in July as imports grew a record 4.7 percent on resurgent U.S. demand for foreign cars, consumer goods and oil, a government report showed on Thursday.

The trade gap expanded 16.3 percent in July to $32.0 billion, the biggest month-to-month increase since February 1999….

September 10, 2009. Tags: , , , , , , , . Finance, Foreclosures, Housing, Labor Department, Unemployment Statistics, Wall St. 1 comment.

DOW up 200, the inmates are trading: Metallica – Sanitarium (1986 w/ Cliff Burton)

Uhm, the markets are ignoring the continuing housing collapse and driving financials higher based on, wait for it..one consumer confidence survey reading…yeah Sell in May, Go Away, the Lunatics are running the floor…..

Vodpod videos no longer available.

more about “DOW up 200, the inmates are trading: …“, posted with vodpod

May 26, 2009. Tags: , , , , , , , . Economy, Entertainment, Heavy Metal, Music, Politics. Comments off.

%d bloggers like this: