Housing Market Will See A Double Dip; Meredith Whitney

In an interview with CNBC on Tuesday morning, Meredith Whitney, banking analyst and owner of Meredith Advisory Group LLC, said that housing will see a double dip. However, she believes that the double dip will be “light”.

She also commented on the Fed’s buying of mortgage backed securities. Whitney argues that at current prices, there are no buyers for mortgage backed securities so the Fed will have to continue buying it. "They've boxed themselves into a very difficult position... if they stop buying; there really is no substitute buyer," said Whitney.

On being asked about the strategy for trading banking stocks, she said that her advice on it is reserved for her clients. However, she is bullish on some financial stocks and also likes the payment industry.