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Does Warren Buffett agree with Meredith Whitney about the prospect of municipal defaults, even...

Does Warren Buffett agree with Meredith Whitney about the prospect of municipal defaults, even if her timing was somewhat off? Some investors reckon that Berkshire Hathaway's (BRK.A) recent termination of CDSs that insure $8.25B of debt for 14 states is an indication of Buffett's doubts about the state of municipal finances. The move comes as money floods into muni bonds.
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Comments (4)
  • bbro
    , contributor
    Comments (10706) | Send Message
     
    Somewhat off??? Scaring the kids again....
    21 Aug 2012, 03:07 AM Reply Like
  • youngman442002
    , contributor
    Comments (5129) | Send Message
     
    I still give her credit..money floods into munis...chasing that yield again...go pensions go...until you fail...
    21 Aug 2012, 07:16 AM Reply Like
  • Ted Bear
    , contributor
    Comments (656) | Send Message
     
    One needs to examine the record: did Meredith say that muni bonds would go down the tube, or that the there would be several (many) municipal defaults? Funny how there actually is a difference....due to the guarantees/insurance.
    21 Aug 2012, 07:23 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (10012) | Send Message
     
    She was right in theory but horribly wrong on her timing.

     

    Whitney will be proven right within 5 to 7 years.
    21 Aug 2012, 08:53 AM Reply Like
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