Taxpayers will lose money in the $700 billion government rescue plan for the nation's banking system, Oppenheimer analyst Meredith Whitney said.We should put Meredith Whitney and Warren Buffett in an octagon and have them fight over this thing.
Contrary to predictions from some supporters of the bailout plan, Whitney said on CNBC that the continued slump in housing prices will make a profit from the bailout unlikely.
"I think you definitely lose money on this $700 billion structure," Whitney said. "There's no idea where house prices bottom, and as a result how can you make money on this transaction?"
She said home ownership rates are still too high at about 69 percent and need to fall below 66 percent as more subprime mortgages given to less-qualified borrowers unwind.
Wednesday, October 01, 2008
Whitney says TARP would be a loser for taxpayers
Oppenheimer star analyst Meredith Whitney says taxpayers would lose money with TARP: