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News Link • Government Debt & Financing

Meredith Whitney Defends Muni Call, Sees 'Indiscriminate Selling'

• CNBC.com
 
In fact, she took the forecast a step further and said when the defaults begin in earnest, it will mark an exodus from the muni bond market. "When you have the first group of defaults you will see indiscriminate selling that would be a buying opportunity for some," the president of Meredith Whitney Advisory Group said in a CNBC interview. "Because there has been such complacency in the market and muni investors have been talked down to for so long—'There's nothing to worry about, there's nothing to worry about'—they'll just fly." Whitney is most known for her call, before the financial system collapsed, that Citigroup [C 5.05 -0.03 (-0.59%) ] was facing intense pressure from risky mortgage investments that would severely hamper the company as the subprime mortgage industry was collapsing. Since then, she has garnered headlines for various dire predictions about the state of the banking industry and its inability to recovery because of pressures from the struggling housing market.

1 Comments in Response to

Comment by Olde Reb
Entered on:

 the recent announcement that two TIFF bonds in this muni are not making payments will not help the city pay bills.


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