Meredith Whitney is often accused and jeered by the "consensus" about crying wolf when it comes to the banks. Meanwhile the markets whistle by the grave yard.
Now its the states turn.
The sober fact though is she is right. California and Michigan are broke. California especially is hamstrung by the unions and a failure of the political budget process to remedy the situation. The question remains: will the political will exist for the federal government to intervene? And if so, when? Before or after the mid-terms? The tea party should love this one.
Meanwhile "extend and pretend" at the banks is nearing its shelf life. If earnings don't disappoint this quarter, wait until 4th quarter. Be patient, you heard it here first: (from Meredith) housing will double dip.