Oppenheimer: Just Starting Our Journey To The Dark Side
A dose of reality for the cheerleaders that have "the end is in sight" delusion...
Oppenheimer Analyst Meredith Whitney: "The real harrowing days of the credit crisis
are still in front of us and will prove more widespread in effect than anything yet seen.
Just as strained liquidity pushed so many small and mid-sized specialty finance companies to beyond the brink,
we believe it will do the same with the U.S. consumer.
As the securitization market remains effectively closed for most asset classes,
we believe more consumers will face the threat of default and banks will simply face far higher loss rates."
Whitney believes that by the end of 2009, available consumer credit will be cut by $2 Trillion or 50%.
The analysts cut their estimates for 2008 earnings for:
Bank of America, Citigroup, JPMorgan Chase, Wachovia and Wells Fargo by an average of 17%,
and reduced their 2009 estimates by 20%. In all, the banks earnings will be 72% lower than the Thomson First Call consensus forecast.
The Nattering One muses again... just starting our journey to the dark side are we. Hattip to Bloomberg.
Oppenheimer Analyst Meredith Whitney: "The real harrowing days of the credit crisis
are still in front of us and will prove more widespread in effect than anything yet seen.
Just as strained liquidity pushed so many small and mid-sized specialty finance companies to beyond the brink,
we believe it will do the same with the U.S. consumer.
As the securitization market remains effectively closed for most asset classes,
we believe more consumers will face the threat of default and banks will simply face far higher loss rates."
Whitney believes that by the end of 2009, available consumer credit will be cut by $2 Trillion or 50%.
The analysts cut their estimates for 2008 earnings for:
Bank of America, Citigroup, JPMorgan Chase, Wachovia and Wells Fargo by an average of 17%,
and reduced their 2009 estimates by 20%. In all, the banks earnings will be 72% lower than the Thomson First Call consensus forecast.
The Nattering One muses again... just starting our journey to the dark side are we. Hattip to Bloomberg.
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