According to Meredith Whitney, CEO of Meredith Whitney Advisory Group, the US housing market will face another dip while mortgage-backed securities and Treasuries are likely to face a material correction:
"The housing market surely will double dip.(...) The Fed has been supporting the housing market, a third of the Fed's balance sheet is tied to mortgages"
Whitney said that Government programs to support housing have been murky and when they come to an end, a lot of supply may come to the market and that's when the real-estate market is likely to go down.
Meredith Whitney also commented credit availability,
"I don't think there's much the Fed can do to get banks to start lending again. That's a structural problem, the model is broken"
Related stocks: Bank of America Corporation (Public, NYSE:BAC), Citigroup Inc. (Public, NYSE:C), Wells Fargo & Company (Public, NYSE:WFC), Huntington Bancshares Incorporated (Public, NASDAQ:HBAN), JPMorgan Chase & Co. (Public, NYSE:JPM), U.S. Bancorp (Public, NYSE:USB), KeyCorp (Public, NYSE:KEY) and Fifth Third Bancorp (Public, NASDAQ:FITB)
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