Meredith Whitney: Housing Prices To Fall Further; Main Street Very Different From Wall Street

Latest Meredith Whitney interview on CNBC on the U.K.: U.S Housing prices will continue to fall.
Ms. Whitney says that there is a corporate recovery going on but the consumer situation continues to deteriorate. Consumer is very precarious. Consumer has less liquidity and jave less available credit. The real issue is the middle class. The underclass in the US has no access to credit anyway.

The situation on capital markets are very different from what is going on on main street. Furthernmore, for banks it is unprofitable to issue mortgages because they can't securitize them now.

She adds that the Fed has been supporting mortgage market. One third of the Fed's balance sheet is currently tied to mortgages. How they exit this program at the end of March (will they?) is the key to watch.