Now that the consumer is finally rolling over, the next leg down begins according to Whitney.
I’m not too sure I think the consumer rolling over is the reason for the next leg down. I really think it is the gov’t. By flushing the system with dollars, too many of them, trying to “fix the problem overnight”, the Fed and Treasury are setting us up for much more pain down the road.
The consumer is actually acting totally rationally. They are paring back spending and paying down debt. This is the perfect response to the current conditions. It is the gov’t and economist that are acting irresponsible. They are trying to bait the consumer into spending more and if that does not work, they are going to just do it themselves, wasting more money and driving us deeper in debt.
Meredith is correct that the numbers are too big to fix. The only thing that will help is time. It will take tie for everything to flush itself through the system. The gov’t is trying to force it through at the expense of the future.
Think about it, if only time will help and the gov’t is just printing money, the only scenario down the road is slow to no growth and much higher inflation as the surge of dollars depresses its value. That will drive up commodity prices (oil, food etc). Stagflation…
Anyway, listen to Ms. Whitney.
Disclosure (“none” means no position):
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3 replies on “Whitney: "More Bearish Now" (video) $$”
Well obviuosly she is short financials so what else is she going to say,,however,,she said the growth is slow for financials for now but the big banks will not go under,,,,,time to buy,,,I will follow Carlos Slim, Heebner and the Prince.
She is nasty looking.
TIME TO BUY CITIGROUP.
I FORGOT TO MENTION CARL ICAN IS ALSO BUYING CITIGROUP – BY THE WAY IT WOULD OF BEEN RESPECTABLE IF SHE WOULD SAY SHE IS SHORT FINANCIALS INSTEAD OF ACTING LIKE SHE IS SAYING ALL THIS OUT OF THE GOODNESS OF HER HEART.
YUK