The US economy faces increasing recession risk, driven by uncertainties surrounding President Trump's tariff policies and weakening economic data. Meredith Whitney, CEO of Meredith Whitney Advisory Group and recognized for predicting the 2008 financial crisis, joins Morning Brief hosts Madison Mills and Brad Smith to outline her perspective on the current economic situation.
Whitney emphasizes the potential of home equity in stabilizing the economy, describing it as the US economy's "ace up the sleeve."
She explains, "There is about $20 trillion of tappable equity in homes right now, and homeowners are starting to tap into that, and that's enormously stimulative for the economy."
"Home equity loans are growing faster than credit card loans, and that actually is a good thing because home equity loans are cheaper [and] more efficient than credit card loans," she adds. "It provides, I think, a lot of struggling homeowners that are cash-poor but asset-rich in terms of the value of their homes, some much-needed relief."
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Whitney acknowledges that although "consumers today are definitely struggling," the potential of home equity loans is "a way out for the economy."
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This post was written by Josh Lynch