Meredith Whitney of Meredith Whitney Advisory Group discusses her thoughts on banks and shares her top financial stock pick. She also shares her thoughts on the sluggish housing market in the U.S.
-- Favorite bank stock pick: Discover Financial Services (DFS).
-- Housing is just bouncing around its bottom and that is getting people excited.
-- Some things are good like # of foreclosures are down, delinquencies are down, credit has improved but core problem remains intact, which is limited access to credit so home ownership continue to decline, what we are seeing are more and more refinances, and cash buyers buying properties.
-- Has the consumer picture improved over last couple of years? No. Unemployment is structurally high and the middle class is where the pain is, as the poverty rate continues to increase. The middle class is getting squeezed as there is low access to credit, low mobility, and they still need to pay their existing debt.
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