The economic meltdown in Europe will have effects both good and bad on the U.S. economy, says financial analyst, Meredith Whitney, CEO of Meredith Whitney Advisory Group.
The eurozone economy has been in a downturn for a record six quarters, shrinking 0.2 percent in the first quarter.
As for the negative spillover, the United States and Europe accounted for over 70 percent of Wall Street's revenue during the last decade, she tells Newsmax TV in an exclusive interview.
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"So when Europe slows to levels that are negative in some areas, that clearly affects Wall Street and it affects the U.S. economy," she says. "The revenues are not expected to grow very much for the big banks," says Whitney, author of the new book "Fate of the States"
Editor's note: To order 'Fate of the States' at a great price — Click Here Now.
But the United States benefits in other ways, Whitney contends. That's because it's so "expensive and onerous to operate in Europe [that] more European companies are building facilities in the United States, be that chemicals, manufacturing, automakers."
On balance, "I don’t see Europe as being a massive risk outside of what will happen socially," Whitney predicts.
But we Americans should beware: "if people don’t have jobs and people have their social services cut back, as in Europe, there's a boiling point for social unrest that the U.S. has to be very careful of," she asserts.
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More from the exclusive Newsmax TV interview:
• Meredith Whitney: States and Municipalities 'Get Away With So Much Accounting Gimmickry'
• Meredith Whitney: US Stocks 'Incredibly Attractive'
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