Saturday, April 25, 2009

Whitney on current state of banking

This is a must-watch.

Note: Meredith Whitney is again dead right on her forecast of credit line cut. Yesterday, I just received a letter from my credit card company and my credit line was cut in half. I have a very high credit line but I almost never borrowed money. Cutting credit line will save banks from putting extra reserves for the potential loss. So in this environment, your FICO score does not matter.