Meredith Whitney is one of the most respected market analysts on Wall Street. She warned repeated of the impending credit crisis, and was prescient in warning of the shaky foundations of some of the largest banks and investment banks before they collapsed. When Meredith Whitney speaks, Wall Street listens!
From the Wall Street Journal:
Just six months ago, I estimated that at least $2 trillion of available credit-card lines would be expunged from the system by the end of 2010. However, today, that estimate now looks optimistic, as available lines were reduced by nearly $500 billion in the fourth quarter of 2008 alone. My revised estimates are that over $2 trillion of credit-card lines will be cut inside of 2009, and $2.7 trillion by the end of 2010.
Inevitably, credit lines will continue to be reduced across the system, but the velocity at which it is already occurring and will continue to occur will result in unintended consequences for consumer confidence, spending and the overall economy.
