MEREDITH WHITNEY: ‘Detroit Will Start A Wave of Municipal Bankruptcies’
JUL. 23, 2013
Meredith Whitney is re-upping her call for a wave of municipal bankruptcies, in the wake of Detroit’s Chapter 9 filing.
Flashback: in 2010, Whitney told 60 Minutes that there could be between “50 to 100” cities defaulting on their debt, totaling “$100s of billions of dollars.”
While there have definitely been a few since then, we never really reached that number.
But today, in an op-ed for the FT, she doubles down:
There are five more towns like Detroit in Michigan alone. There are many more municipalities across the country in similar positions.
Basically, the profligacy of past city administrations past has finally caught up:
…these days, things are very different in the world of municipal finance.