When analyzing Meredith Whitney's predictions, optimism can only be measured on a sliding scale. True to form, Whitney, the economic misanthrope who predicted Citigroup's demise, told CNBC she anticipated another 10 percent drop in housing prices and warned that an inflation crisis is looming. But Whitney also surprised viewers by calling the U.S. economy “dynamic and strong” and predicting states like Kansas, Missouri, Iowa, and Texas will benefit from higher oil prices.
“You don’t have a lot of bad news through May and June,” she said. “And then you have some real challenges coming after June as housing starts to decelerate again as foreclosures resume and inventory really comes on the market. Investors who are looking for a strong second half may be disappointed."
Shhh, Meredith. No need to keep going. You had us at "don't have a lot of bad news."
Meredith Whitney an Optimist? There Has to Be a Catch [NetNet/CNBC]