Oppenheimer & Co. financial industry analyst Meredith Whitney is widely recognized on Wall Street as being one of the first individuals to accurately identify and predict the size and scope of the current economic woes facing the U.S.'s financial system. Mrs. Whitney correctly predicted and warned clients (via documented letters of research) of the oncoming financial industry meltdown back in October 2007, a full six months prior to the March 2008 collapse of (the artist formerly known as) Bear Sterns. As a result, her forward-looking financial system and policy thoughts are now officially REQUIRED viewing material...these come courtesy a Bloomberg TV interview aired recently on February 4th, 2009:In addition to her insightful thoughts on the U.S. government's 'BAD BANK' proposal, Mrs. Whitney also advises investors to continue staying away from investing in the common stock of U.S. banks. Per about 8 minutes into the interview, Mrs. Whitney states: "...What we do know is that the existing banks need more capital for a number of reasons. If you are an existing shareholder, if you are an equity shareholder, then you are at the absolute bottom of the totem pole. Your risk is at the highest...Investors should NOT even consider owning banks at this point on an equity basis because you don't know what you're getting (owning) but you do know that with any change that occurs (due to government intervention), you are at the bottom of the totem pole. So your interests will be considered absolutely last by the government and in many cases, your interests will be 'crammed down'."
Data Courtesy: Bloomberg + Youtube
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