$100B in Muni Bond Defaults...looming???
Here it is, what everyone will be talking about...
Says Meredith Whitney: This is the other big crisis besides housing, and the scariest part, she says, is the level of complacency.
Also featured is Chris Christie: "The day of reckoning has arrived."
The focus on the budget problems facing Illinois, which has had to delay payments to all kinds of parties, is definitely worth watching.
As for specifics, Whitney predicts a "spate" meaning 50 or more defaults needed, and suspects the big test will come when bonds need to be rolled over in the spring.
Here's That Must-Watch 60 Minutes Segment On The States' "Day Of Reckoning"
She was right about Citigroup's fall from grace, and she's pretty sure about the municipal debt crisis, too.
Last December, on CBS's 60 Minutes, Meredith Whitney, the analyst made famous by her correct pre-crisis prediction of Citigroup's problems, said that U.S. municipalities would default on a massive scale by sometime this year.
Though her prediction has yet to come to fruition, she remains adamant, defending her stance on CNBC's Squawk Box early Wednesday, in spite of critics questioning her judgment.
"If anything, there has been more validation, so much more validation on a daily basis," Whitney said.
Indeed, Whitney now says the numbers she provided in the previous 60 Minutes interview have just been "getting worse" since she obtained more information, although that might prove inaccurate her specific default prediction last December.
"It's not as if I chose to go on 60 Minutes to make a specific prediction," Whitney says. "You don't choose 60 Minutes, they choose you."
Still, even when considering municipal defaults are down not up since 2010, Whitney stuck with her guns. "The muni defaults is not part of the larger issue," she told viewers. "Muni defaults [are] going to be a consequence of the incredibly precarious fiscal situation that the states are in."
Story continues below With municipalities receiving what she estimates to be 40 percent of their operating budgets from the state governments, that could pose big problems for municipalities nationwide.
Meredith Whitney: 'More Validation' Everyday Of Impending Muni Debt Crisis
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