Meredith Whitney warns that while Wall Street talks about consumer resilience, signs of weakness at the “bottom” of the US economy are being overshadowed. “We know that low-income consumers have been under tremendous pressure,” Whitney said. The former banking analyst was famous for a report published in 2007 before the global financial crisis broke out. She said that now even families with an annual income of 100,000 to 150,000 US dollars are “beginning to show pressure.” In an interview with the media on Tuesday, Whitney said, “Everyone says that consumers are very resilient, which makes me very upset because they haven't actually looked at what has actually changed at the bottom.” Although AI-related stocks dominate the market narrative, she estimates that the actual performance of most stocks is not ideal, and if AI capital spending slows down, GDP growth will “barely” remain positive. She described the AI investment boom as probably a “house of cards” and warned that due to the high concentration of wealth effects brought about by this boom, once related transactions subside, the overall economy will be particularly vulnerable.

Meredith Whitney warns that while Wall Street talks about consumer resilience, signs of weakness at the “bottom” of the US economy are being overshadowed. “We know that low-income consumers are under tremendous pressure all the time,” Whitney said. The former banking analyst was famous for a report published in 2007 before the global financial crisis broke out. She said that now even families with an annual income of 100,000 to 150,000 US dollars are “beginning to show pressure.” In an interview with the media on Tuesday, Whitney said, “Everyone says that consumers are very resilient, which makes me very upset because they haven't actually looked at what has actually changed at the bottom.” Although AI-related stocks dominate the market narrative, she estimates that the actual performance of most stocks is not ideal, and if AI capital spending slows down, GDP growth will “barely” remain positive. She described the AI investment boom as probably a “house of cards” and warned that due to the high concentration of wealth effects brought about by this boom, once related transactions subside, the overall economy will be particularly vulnerable.