Meredit Whitney Discusses Consumer Spending, Mortgage Market on CNBC

Meredith Whitney is currently appearing on CNBC's Squawk Box, where she discusses consumer spending and the state of the U.S. economy. She was referring to the "Debanking" of America meaning that more and more of the U.S. consumers are finding themselves outside the traditional financial system. Whitney also talked about the municipal bonds. She is well-know for predicting that the municipal bond market is going to crash. Although there has not been a major crash so far, Whitney said it is just a matter of time as many municipalities are still struggling and the negative news of budget cuts can be read daily. Lastly, Meredith Whitney also discussed the current state of mortgage market and called for a national mortgage policy. She was criticizing Freddie Mac and Fannie Mae, which hold mortgages that no bank would want to hold on its balance sheet.