Ignore the bulls, the financials massacre is not over http://www.cnbc.com/id/15840232?video=957685796&play=1
this massacre took less than 6 months to have the markets on it's knees. some stocks are flat on the ground and some are 6 feet under. it took 5 years and only 6 months to destroy all the gains. 6 months!
I have yet to listen to the video, but all I can say is this girl has got it right and will do so from hereon. I have a gut feeling that she has also had a substantial promotion since her initial critique of the banks and their BS write downs.
Hugh Hendry is saying financials might take 20 years to break their previous highs. with all the regulation they will get its hard to argue with that
She has a vested interest in continuing of the doom and gloom crowd. So what if you have 2 trillion pulled from consumer credit, thats gonna come from the people that would have most likely defaulted anyway. You will have a 1 trillion dollar spending package when President elect Obama takes office, you think banks are gonna sit on the free government money forever? Plus you have record cash on the side lines folks, its gonna have to be put to work someday.
i think she is spot on pretty much on everything. i agree with her especially on housing - 20% down sounds about right - in fact it could be worse if government did nothing. we need to get back on inflation adjusted trajectory for house prices - and without inflation we will have to get big haircut on house prices - especially with unemployment on the rise.... the problem is that she sees glass as half empty, i.e. she does not mention any positives (and there are quite a few).