Well here it is in the press, then. Three days after my post Recovery Is Not, Meredith Whitney said in an interview with CNBC that the rise in consumer spending is due to people no longer paying their mortgages, and that we are unequivocally in for another dip in housing. Hey, do you think she’s been reading my e-mails? No, really – she’s an awesome economist and I want to be just like her when I grow up (except for the part where she marries the pro wrestler- I’ll keep my amateur one, thank you.) She hesitates to call a “double dip” for the economy as a whole, but that’s typical of economists in the press. If the evidence is not overwhelming they will not indulge in predictions, lest the news becomes a self-fulfilling prophecy or lest they end up wrong and thus damaging their credibility and careers. I, with little to lose on that front maintain it is likely we will see a broader dip, as housing is at the core of all the trouble we are in. I would not be surprised to see that happen in California, at any rate.
If you have ten minutes to catch up on economic news, I highly recommend you take a look at Meredith Whitney’s fabulous interview with CNBC (and note- it is a rare occurrence indeed to find an economist who justifies the description “fabulous” when interviewed).
From “Business Insider”
Meredith Whitney: The Rebound in Consumer Spending is Just The Result of People Not Paying Their Mortgages
by Gregory White