ajtj99's Market Pulse

[challo]

Meredith Whitney was on CNBC 11/05/08. Here are some of her comments:

Financials and Economy are so far off the tracks right now....

Where are we in the Financial Sector?

We are in a new part of the cycle, going forward, there will be contraction in the overall mortgage market - credit card lines are going to shrink, credit will be taken away from companies, we've never seen this before, also we have an economy that is not doing good right now. Earnings estimates on Wall Street are still to high.

How much is priced in?

Citigroup ( C ), Wells Fargo ( WFC ), Bank of America ( BAC ), JP Morgan ( JPM ), I think these companies still have further down to go, we are in for a rude awakening, I see a slow grind down for these stocks. I think Citigroup goes into the single digits. The stock prices in the financial sector are still way to high, wait for lower prices.

http://www.cnbc. com/id/15840232? video=920170651&play=1

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Amid new evidence of a darkening economic picture, Goldman Sachs (GS: 77.78, -2.94, -3.64%) now forecasts that the economy will sharply contract this quarter and in the first quarter of 2009, resulting in the highest unemployment rate in more than two decades. As a result of the worsening economic picture, Goldman predicts the Federal Open Market Committee will be forced to cut interest rates by another 0.5 percentage point to the lowest level since the 1950s. . . .

. . . . To fight this gloomy economic picture the Fed will likely cut the federal funds rate to 0.5% at its next meeting on December 16, “if not before,” Goldman predicted.

http://www.foxbusin ess.com/story/ markets/economy/ goldman-issues- sobering- economic- forecast/