- Pop Queen Whitney Houston Dies on Eve of Grammys
- Greek Debt Saga Back on Center Stage for Markets
- Greece Now Struggles to Overcome Mistrust
- Low-Interest Loans to European Banks Prompt Concern
- British Bankers Arrested in Tax Probe
- The Fight Begins: Obama's Budget Going to Congress
- Fuel Removal Under Way on Italy Cruise Ship
- Boeing Frustrated With Dreamliner Glitch
- Pentagon Budget: $178.8 Bln for Warships, Fighter Jets
- US Stocks Avoid Closing Down Over 1%, Again
- In Search of America's ‘Hottest Forecasters’
- Dow vs. S&P 500: Which is a Better Investment?
- Mick Fleetwood on the MP3 ‘Dumbing Down’ of Music
- Avis on the Road to Strong Growth: Analyst
- Private Homebuilders: Dead Men Walking
- LinkedIn’s Growth Is Already Priced In: Analyst
- The Real Reason Behind Bank of America’s Rally
- 5 Hedge Funds’ Top Stocks Soar After 2011 Rout
MOST SHARED
- Low-Interest Loans to European Banks Prompt Concern
- Sun Arrests Pile Pressure on Murdoch Media Empire
- Clashes as Greek Parliament Debates Bailout Law
- Lodgenet Interactive Media in Hotel Rooms
- Pop Queen Whitney Houston Dies on Eve of Grammys
- Charting the Market: 50 Percent Correction Ahead?
- Barbie: Where Fashion Week and Toy Fair Collide
- Whitney Houston, Superstar of Records, Films, Dies
MOST POPULAR
HOT ON FACEBOOK
Stocks Overvalued, Recession Will Return: Meredith Whitney
Text Size 
Stocks are overvalued and the US economy is likely to fall back into a recession next year, well-known analyst Meredith Whitney told CNBC.
 |
cnbc.com Meredith Whitney |
"I haven't been this bearish in a year," she said in a live interview. "I look at the board and every single stock from Tiffany [TIF
Loading...
()
] to Bank of America [BAC
Loading...
()
] to Caterpillar [CAT
Loading...
()
] is up. But there is no fundamental rooting as to why these names are up—particularly in the consumer space."
In a wide-ranging interview, Whitney, CEO of the Meredith Whitney Advisory Group, also said:
- She was disappointed that Fed Chairman Ben Bernanke didn't spell out how the Federal Reserve planned to exit "the biggest Fed program to date, which is the mortgage-backed purchase program." In a speech earlier Thursday, Bernanke said the central bank was watching the dollar's decline but is likely to keep interest rates low.
- The US consumer was going through the biggest credit contraction ever—even bigger than that during the Great Depression. "That credit contraction is accelerating," she said. "There's nowhere to hide at this point."
- The banking sector is not adequately capitalized and will need to raise more capital in the coming year.
- The residential real estate market is likely to worsen and remains a much bigger threat than the commercial property market. The government's mortgage modification program won't result in any major improvement in homeowners' ability to stay above water, she added.
"I don't know what's going on in the market right now because it makes no sense to me," she said.
"The scariest thing about the Fed's program is that the money on the sidelines isn't going to support that asset class," she added. "So the trillion dollars of Fannie (Mae), Freddie (Mac) and mortgage-backed securities that the Fed is holding—there's no substitute buyer there."
- Marketing clichés aside, sometimes diamonds are for investing.
- The ‘Fast Money’ traders weigh in on fashion related stocks from apparel to footwear.
- This list of the 10 most active cities for speed traps was compiled by Trapster.com. See if your town is there.
- This Valentine’s Day should prove a love fest for restaurants, as many couples will be dining out.
- Here’s a look at Westminster Kennel Club’s most successful breeds—and how much they cost.
- What kind of homes do celebrity couples share? Here’s our updated list. Take a look.
Data is a real-time snapshot *Data is delayed at least 15 minutes
