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Meredith Whitney: Banks Oversold, Muni Defaults Still Coming

March 15, 2012 | About:
Dheeraj Grover

Dheeraj Grover

18 followers
Meredith Whitney, founder & CEO of Meredith Whitney Advisory Group, offers her reaction to the bank stress tests. She also explains why she remains worried about the muni bond market.

She thinks large-cap banks are oversold and smaller banks are over valued. But while she said there is room for gains, she also issued a dose of caution about how far the companies can go. She said "The banks should trade at tangible (book value) or a little better."

She remains very worried about the state of municipalities and their debt. Budgets remained constrained, High unemployment continue to drive regional weakness, spending is rising faster than governors can manager. She predicts wave of municipal debt defaults.

She said, "There's been so much backroom political maneuvering to keep these cities from going bust... There's been every effort on the part of states to prevent really this tidal wave of defaults which is going to happen sooner or later, If people want to tell me 'you're wrong because this hasn't played out,' stay tuned."

Here is the video:



Credit: www.cnbc.com

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 3.3/5 (7 votes)

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