December 2010

So Meredith Whitney, an equity side analyst stock expert wants to analyze and comment on the Muni side. Great!

Welcome to the world of U.S.A. Public Finance and the Muni Markets, Meredith.

I have been contacted by countless people in regards to Meredith Whitney's decidedly negative comments on U.S.A. Municipalities (States and Locals) and their debt securities. It has not just been recent. Meredith Whitney started some months ago to warn on Muni finance.

She has also taken heat by those who know Municipal Bonds as traditionally safe and stable. Some Muni experts have accused her of headline grabbing.

My reply to Meredith Whitney's claims of a crisis in Municipal budgets, Muni defaults, bailouts, etc., etc. is:

Meredith Whitney is an optimist.

For press or anyone who wants to get more out of Meredith Whitney, I would advise asking her about Muni structural deficits, GASB 45, and P3's.

What Meredith is saying is no shock to me. I have seen it coming for some time...at least six years ago I starting giving my own warnings.

I've had some decent press in my time watchdoging public finance and being the Muni investor advocate, but Meredith Whitney has been able to spotlight this problem better than I ever could.

I only wish she would have stepped up earlier.