CNBC, 09/10/09, Meredith Whitney, Home prices will drop another 25%

CNBC's Squawk Box with Joe Kernen, Becky Quick and Carl Quintanilla, Sept 10, 2009.

From Meredith Whitney's website.

http://www.meredithwhitneyllc.com/fir...

Meredith Whitney is the CEO of Meredith Whitney Advisory Group, LLC, a macro and strategy-driven investment research firm.

In 2009, Ms. Whitney was named as one of Time Magazines list of 100 Worlds Most Influential People and was ranked the #1 Investment Analyst in her category by The Wall Street Journal.

In 2008, Ms. Whitney was named one of Fortunes Top 50 Most Powerful Women, The Wall Street Journals 50 Women to Watch, Smart Moneys Power 30, and Crains 40 Under 40.

Ms. Whitney was also ranked in Institutional Investors 2008 All American Research Team.

Well followed for her core research, Ms Whitney and her team also focus on a broad section of financials including large, small, and mid-size banks, brokers, independent commercial and consumer finance companies.

Prior to founding Meredith Whitney Advisory Group, Ms. Whitney was a Managing Director and Senior Financial Institutions Analyst for Oppenheimer & Co. Inc.

Throughout her tenure at Oppenheimer, Meredith was most noted for her research on the ultimate decline in home prices, the future of the US mortgage industry, and the consumer lending market, including specific focus on the credit card industry.

In 2007, she wrote prolifically on the threats surrounding the weighted influence of the rating agencies on regulatory capital determinants and the risks of the monoline insurers on financial institutions.

In 2006, Ms. Whitney presented to the FDIC on the U.S. consumer and the risks in the sub-prime market.

Previously, Ms. Whitney worked as a financial analyst at Wachovia Securities, CIBC World Markets, and Oppenheimer.

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[brother234]

affordability isn't there she keeps telling us, and because of it, a drop is necessary. And based on your focal point, which is hers as well, here is her point on homeownership% - that without the credit, were going to tend to retrace back to certain percentage of the population who can maintain a home. Why this ratio established itself is unclear to me, but she has said elsewhere that home ownership ratios went up due to the governments creative credit financing programs for low incomes.

[SANTORIOBUSTANUT]

meredith i will fuck you like the whore that you are.

[kosai19]

Home ownership is more a function of credit availability than supply. Even if home prices drop another 50%, if the number of loans banks are willing to provide are small the number won't rise. Lets face it, the average person can't put 20% down on a home or even 10%. Add onto that the negative national savings rate and it's not hard to see that she has a valid point.

[hkrainman]

Yes, they will live in those houses, but they will rent them!

[kierkegaardrulez]

Meredith is totally wrong to use homeownership% to predict housing declines. Obviously, with a vast oversupply of housing built during the boom years, home ownership SHOULD be higher than the historical level as prices fall. SOMEONE will live in those houses. Real calculation depends on affordability.