Wave of Muni Defaults to Spur Layoffs, Social Unrest: Whitney

Thursday, December 23, 2010
By Paul Martin

By: CNBC.com

A wave of defaults by state and local governments in the coming months will spark a selloff in the municipal bond market, hurting US economic growth and stocks and causing social unrest as governments are forced to lay off workers and cut back on services, well known financial analyst Meredith Whitney told CNBC Tuesday.

Responding to the uproar over her “60 Minutes” interview broadcast on CBS Sunday night, Whitney defended her prediction that at least 50 to 100 cities and towns could default on their debt as states and the federal government cut back on financial support.

Muni experts, including an analyst from Standard & Poor’s, dismissed her predictions, saying the numbers don’t add up.

The Rest…HERE

Leave a Reply

Support Revolution Radio