Video Meredith Whitney talks about Bank Earnings

I include Meredith Whitney mental super powers in my new “Talking” E book “Breaking the Modification Code.” Her deep understanding of Wall Street Banking issues and how it affects the every day Joe Six Pack is amazing! In this video she talks about how the banks earnings are “Manufactured”. Government intervention has changed the rules on fundamental investing. She clearly signals that the Wall Street “Insiders” has every advantage in trading bank stocks and the Retail Investor is shut out of the information and could potentially “Get their heads Chopped Off”. The banks are changing their business models because their securitization business is no longer profitable.

One area of concern I have is how are they going to securitize the 105% to 125% refinances. Who would buy them and at what premium if any?

When the defaults rates numbers start to pop up on these highly over leveraged loans. They will end up as Short sale listings, period. This will push the foreclosure problem down the road for a longer recovery. My statement to all those seeking HIGH Loan to Value refinances and modifications is to read the promissory notes and deed of trust entirely. I feel these banks will put FULL RECOURSE Verbiage in there so you will be responsible for deficiency.

JB