Meredith Whitney continues to warn of likely defaults in the municipal bond sector. She said on CNBC that "hundreds of billions" in municipal defaults across the country are likely.
"There are a myriad of examples of governors expecting their own municipal defaults," she said.
From what I am hearing from serious people, who get briefed on this at the highest levels, Whitney is dead on. She may be a bit early on her forecasts but the state and local muni debt tsunami is coming.
Here's a clip from part of Whitney's appearance:
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