Inquiring minds are looking at CBSNews for a 60 Minutes piece on the looming state and local government financial crisis entitled “The Day of Reckoning” [the 14-minute video is on the link].
Finally…now even the Liberals/Socialists/Progressives have awakened to ‘the problem’! Talk about getting religion late!
Well, maybe this means they are finally getting it in capitals around this nation…
Meredith Whitney is the main focus of this piece for her call on the dire straits that the muni market finds itself in:
Says Meredith Whitney: This is the other big crisis besides housing, and the scariest part, she says, is the level of complacency.
Also featured is Chris Christie: “The day of reckoning has arrived.”
The focus on the budget problems facing Illinois, which has had to delay payments to all kinds of parties, is definitely worth watching.
As for specifics, Whitney predicts a “spate” meaning 50 or more defaults needed, and suspects the big test will come when bonds need to be rolled over in the spring.
Of course, today when an experienced truth-teller like Ms. Whitney tells the unvarnished truth…the hounds of hell are unleashed. Never mind how many times the messenger has been right, we are to believe the people propping up the system:
Meredith Whitney continues to get thumped by everyone under the sun for predicting on 60 Minutes that 50-100 American cities will go bust next year, triggering the next leg down in the financial crisis.
Whitney’s competitors, for example, are outraged (in part, no doubt, because she was on 60 Minutes, not them).
Journalists and research firms are scrambling to refute her.
Towns and cities are furious.
Muni bond holders want blood.
And so on.
She correctly called the banking crisis. Even so far as to say that Citigroup was bankrupt.
She correctly called Fannie and Freddie. Stock market melt down, et. al. Never being wrong. Yet, now she is supposed to be total incompetent.
I thought you were chamoion until someone beat you? Ms. Whitney is, as far as we can tell at SurvivingCalifornia.com, unbeaten and untied.
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