Seeking Alpha

Meredith Whitney isn't just sticking by her call that U.S. municipalities face a wave of...

Meredith Whitney isn't just sticking by her call that U.S. municipalities face a wave of defaults, she goes a step further in forecasting an exodus from the muni bond market. "When you have the first group of defaults, you will see indiscriminate selling... Because there has been such complacency in the market and muni investors have been talked down to for so long... they'll just fly."
Comments (6)
  • Tack
    , contributor
    Comments (14388) | Send Message
     
    Just like some here on SA, when she's wrong, she just becomes more strident.
    12 Jan 2011, 09:43 AM Reply Like
  • Credible Clarity
    , contributor
    Comments (160) | Send Message
     
    Soon, in order to keep the markets as medicated as the Fed and Treasury have been able to affect for months, they'll need to start putting meds in the public water supply to keep all the little guys quietly complacent.
    Agree with Whitney that once the covers are thrown back on a few small local municipal defaults, the exodus will not need to be massive to quickly raise yields and deliver more losses to mutual funds, pension funds, and insurance companies - - still operating on a need to realize 8-10% returns to meet obligations down the road (but getting closer and closer).
    12 Jan 2011, 09:43 AM Reply Like
  • bbro
    , contributor
    Comments (10402) | Send Message
     
    Let us see the data Meredith????......more drive by commentary
    on CNBC with creampuff questions....
    12 Jan 2011, 09:50 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Bbro,

     

    Data,

     

    Since you are such a fan of the Crony Capitalist Bankers,
    would you accept a supporting statement a couple months later from Bankster in Chief, Jamie Dimon, as legitimate data?

     

    Ignore Data at your own Peril.

     

    www.businessweek.com/n...

     

    For now,

     

    Whitney 1
    Bbro 0
    31 Mar 2011, 01:18 AM Reply Like
  • lafano
    , contributor
    Comments (222) | Send Message
     
    Easy call by Meredith --- without much risk...just look at CA and IL in particular and you and I can make the same call...lol. Just like any other asset class, some Muni's are still good for the portfolio.
    12 Jan 2011, 10:22 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    I agree with her....and they are selling more today....the only way you would invest in them now is knowing that somehow the Feds will bail you out....to me that is not a good investment strategy...LOL
    12 Jan 2011, 10:44 AM Reply Like
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