Chris Whalen On Banks, Illusory Expectations and The Great Federal Reserve Shell Game

Airtime: Fri. Oct. 2 2009 | 5:28 PM ET

Insight on whether financials will go from first to worst this quarter, with Christopher Whalen, Institutional Risk Analytics (3:35).

Airtime: Mon. Oct. 12 2009 | 10:39 AM ET

A preview of what to expect from earnings season, with Chris Whalen, Institutional Risk Analytics; Paul Miller, FBR Capital Markets; and CNBC's David Faber (5:15).

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From Tech Ticker:

• "Why is liquidity going into the financial sector? It's because the real economy is dying [and] everyone is fleeing into the stocks and bonds because they're liquid at the moment," Whalen says. "That's not a good sign."

• "Investors should think about this because the fourth quarter in the banking industry is going to be a bloodbath," says Whalen, who believes smaller and regional banks like Hudson City Bancorp may come into favor vs. larger peers, which have dramatically outperformed since the March lows.

• "When you see the markets rallying when the real economy is shrinking that tells you this [recovery] is not going to be very enduring," Whalen says.

All new articles from Whalen below:

When Wall street Nearly Collapsed by Chris Whalen  (Fortune)

Wells Fargo & Securitization Red Flags

An Alliance Of Convenience: The Congress, Primary Dealers & The Fed

The appearances from Whalen have been piling up in the inbox.  And that's a good thing unless you're Geithner, Summers, Bernanke, Kohn, or a failed bank CEO.

Watch

Comments

[James H]

First video cracks me up. Whalen predicts a credit-induced depression and the Money Dummy says, uh, Ok, so "How do you play this?" WTF? And then she calls him Chris Wales. Classic.