Wall Street: January 2010 Archives

People really need to stop listening to this woman.  I said it back in November when she made her crazy comments then, and I say it now. 

Even though I know she would love to take credit for the Wall Street panic this week, nothing could be further from the truth. 

If you look at the news out of China and threats against future bank profits by the President of the United States (which she could have in no way predicted), it's not difficult to see why so many people would feel jittery and want to sell off a few questionable stocks.

And then, today, Ms. Whitney throws gasoline onto the fire by saying President Obama's proposed banking regulations will probably become law and "dramatically" reduce bank profits. 

What?  What shit is Meredith Whitney smoking to think that this bill will pass?  I can even imagine President Obama and Paul Volcker secretly saying - 'We'll take a tough stand on the banks, but no way in hell does this pass.'

She even has the temerity to say this AFTER the Massachusetts Senatorial election this week.  What's going on here?

First of all, there is no chance this bill gets to the Congress before the mid-term elections in November and (thanks to the Supreme Court decision yesterday) with all the new money that corporations (including big banks) can spend on candidates, I suspect there will be a different make-up of the House and Senate by the time this bill does come up for a vote.  And it will, most likely, be defeated - or watered down to a point that it really has no effect.

So, what is the point of Meredith Whitney speaking out with such bravado about how bad things are?  Perhaps she is shorting everything in her portfolio and has discovered that she can move the markets with her statements.  Perhaps she's just a downer of a person and needs some joy in her life.

I don't know - but it disturbs me whenever she talks.

Personally, I think President Obama was wrong to come out with such a strong statement against banks on the day Goldman Sachs reported such strong earnings.  I think, in general, negativity about the economy should be released only in the Summer when people aren't so gloomy and can handle bad news better. 

Obviously, that can't happen.  And we shouldn't "put lipstick on a pig", as they say, if things are getting worse out there.

I just don't believe things are getting worse.  I don't believe Meredith Whitney thinks things are getting worse, but, for whatever reason, she wants you to believe they are.

Jill Kennedy - OnMedea