Home prices in the US could fall by another 25 percent because of high unemployment and another leg down will come for stocks, banking analyst Meredith Whitney told CNBC Thursday.
“If you look at the drivers for unemployment I don’t see that reversing very soon,” Whitney said.
“Banks are taking advantage of what the government is doing by artificially inflating asset prices so they can ride a steep yield curve and they’re going to have a third quarter that reflects that,” Whitney said.
Their shares are unlikely to be uplifted by these results as it happened in mid-July, because then they were under-valued, she added.
