Chairman Bernanke is saying quite the opposite but then again, when has Bernanke not made rosy claims? It's not even worth listening to what he has to say because it sounds so ridiculous and is often downright laughable. Who believes him? At least not everyone is believing the same old drivel being pumped out. CNBC:
Whitney, a former analyst at Oppenheimer who has her own firm, is renowned for calling out the problems with banks' toxic assets before the issue became widespread.It does look like some are promoting a banking industry that will not return to its past glory any time soon. Who are the mysterious consumers who will be returning to peak credit spending? Not. Going. To. Happen.
"This is the great government momentum trade," Whitney said on why bank stocks had seen some improvement lately. "But the underlying core, earnings power of these banks is negligible."
Whitney also said that consumer spending is still going to remain slow. "There's a massive retraction in consumer liquidity," said Whitney. "Credit contraction is happening at an accelerated pace. Consumer spending is going to be less than people expect going forward."
She cited Bank of America as an example of credit contraction. "They cut more than $200 billion in credit card lines in the first quarter of this year," said Whitney. "Consumers are not going to spend money."
