Is Meredith Whitney's Bullish View of the U.S. a Good Sign?

Her pessimism has had quite an impact on the U.S. economy. Can her optimism do the same? Banking analyst Meredith Whitney is making headlines today for her support of the “emerging markets” within the United States. She is particularly intrigued by the agricultural states, noting that China's evolution (moving from a net food exporter to an importer) could actually help the U.S. This may initially sound like great news – and if all goes as planned, it could be just that. After all, Whitney is one of the most prominent analysts in the nation; after successfully predicting the financial crisis, investors have been watching her with a close eye. When she speaks, people take notice – even if they don't agree with her. Thus, if she – a so-called pessimist – has faith in the U.S. economy, there must be good things ahead for us…right? Maybe not. Let's take a look at the facts: #1: Whitney Has No Faith in the Housing Market She says that Florida and California are the biggest problems. But without a national housing policy, we're doomed. (What would a good national housing policy entail? She didn't say.) #2: Whitney is Focused on Growth, Not Problem Areas Whitney thinks that America should focus on its areas of growth instead of trying to help the areas where problems persist. That might work out in the short-term, but what about the long-term consequences of repeatedly ignoring areas where America is lacking? Our government took that approach to outsourcing, and look what happened? Now all of our jobs are overseas. #3: Negativity Goes a Long Way Whitney is known for making big, Earth-shattering statements about the economy. Now that she's being a bit more positive, will people react the same way? Negativity tends to go much farther than positivity. But even a positive reaction to her statements may have little to no effect on our economy. Whereas those who listened to her before could run for cover, investors that listen to her now will only benefit if they invest in agriculture and if she's right. I'm not an investor. But if I was, I wouldn't like those odds. Follow me @LouisBedigian