Meredith Whitney was on CNBC in London Tuesday morning. She concentrated her comments on mortgages and banking. She sees the winter lull as a harbinger of renewed softness in the housing market.
Note: the FOMC statement Tuesday reiterated the ending dates for MBS purchases. Let’s see how this plays out for mortgage rates in April and beyond.
Whitney is bullish on some financials, namely Visa (V) and Mastercard (MA). However, in the video below she talks a lot about the coming supply of houses which are now receiving modifications. Whitney believes these modifications will fail, forcing those houses onto the market and upsetting the supply-demand balance. She notes that banks are under-reserved for another leg down in the housing market, meaning the credit writedowns from a second wave will impair lending capital. The money quote comes right at the end of the second clip. Look for it.
