.jpg)
The Sky is falling(.wikimedia.org/wikipedia/commons/a/a4/F)
According to a report this morning on CNBC, MeredithWhitney has forecast that housing values will drop another 25%. According to Ms. Whitney, it is not a question of "if" the values will fall, but when.
While Ms. Whitney did go on to back up her remarks with analytical data, the bottom line is that data is changing constantly, and there is always data out there that will contradict whatever she is reporting.
At this point in time, we are hearing a lot of more positive news about the housing market, such as trhe August 25th Case Shiller index report that housing values are starting to stabilize, and even rise in some areas. I believe that it is a bit irresponsible for someone with Meredith Whitney's influence to say "the sky is falling."
We know that there are hordes of people out there who are relatively unsophisticated when it comes to analyzing market data. These people depend on analyst forecasts to determine much of their behavior in life. If they believe the sky is falling, they will run for cover, and Meredith Whitney's forecast will become a self fulfilling prophecy.
This economic "recovery" is very fragile right now. We need more moderate input from so called "experts" to help move the markets, both Wall Street and housing, in the direction we want to see it move.
Comments
Meredith Whitney doesn't have a responsibility to help prop up the housing market. She has to call it like she sees it. However, I don't think the data supports another 25% drop: blog.lucidrealty.com/2009/09/10/housing-prices-to-fall-another-25/
To Lucid Realty - I agree that Meredith Whitney does not have any responsibility to prop up the housing market, but I also feel, as I said in my article, that as a fund manager, she might direct her comments to her investors, but refrain from making such dire predictions on media sources as influential as CNBC when her predictions are not based on data that supports her predictions. This is just my opinion. Thank you for your comment. Shelby
So Meredith has an opinion contrary to yours. She has become who she is by giving her opinion (and being mostly right so far). But for some reason you think she should not give her opinion because it may have an impact on the market? I trust her and I want to hear what she thinks just as I wanted to hear her opinion about Citi which started it all.
Hey Noworry
I never said I either agree with her or disagree with her. I just worry about a panic stricken population that tends to hang on every word from media "experts" and react as though what he/she says is in fact the truth. Sometimes by virtue of saying it, it becomes truth. Of course she is free to talk about how she feels, and you are free to listen.
Shelby
Got something to say?
Examiner.com is looking for writers, photographers, and videographers to join the fastest growing group of local insiders. If you are interested in growing your online rep apply to be an Examiner today!