DirectorofCredit Analysis at HJ Sims & Co. Richard Larkin spoke with Fox Business Network (FBN) Senior Correspondent Charlie Gasparino about Meredith Whitney’s prediction that there will be “hundreds of billions of defaults of municipal bonds.” Larkin said the prediction was “ludicrous” and he was “spitting mad” about her comments. He assured Gasparino “that aint going to happen.”
Excerpts from the interview are below from FOX BUSINESS NETWORK:
On whether he believes there will be more municipal bond defaults:
“There will be more defaults. But nothing coming close to hundreds of billions of dollars. I am putting my career on the line by saying that aint going to happen. If she’s right she will be a hero and I will be out of business. I’ll put my career on it.”
On Meredith Whitney’s prediction of municipal bond default on 60 Minutes:
“When I saw 60 Minutes I was spitting mad. To predict hundreds of billions of defaults of municipal bonds would be to make an assumption we are going to have something worse than the Great Depression of the 1930’s. Her prediction is ludicrous. I think it’s irresponsible. It’s damaging a lot of peoples portfolios. I know cities and states are having problems but I have seen them perform through six recessions and this recession is clearly the strongest and the worst since the Great Depression and yet I don’t believe there are going to be wholesale defaults.”
On whether prices of municipal bonds reacted to Whitney’s predictions:
“Yes but it’s hard to say whether or not that was the only thing that affected prices.”
On whether California will default:
“California’s chances of default are one tenth of one percent. If they ever default, in my opinion, it would be a technical thing, it would be solved in days.”
Watch the video here.Also check out:
Excerpts from the interview are below from FOX BUSINESS NETWORK:
On whether he believes there will be more municipal bond defaults:
“There will be more defaults. But nothing coming close to hundreds of billions of dollars. I am putting my career on the line by saying that aint going to happen. If she’s right she will be a hero and I will be out of business. I’ll put my career on it.”
On Meredith Whitney’s prediction of municipal bond default on 60 Minutes:
“When I saw 60 Minutes I was spitting mad. To predict hundreds of billions of defaults of municipal bonds would be to make an assumption we are going to have something worse than the Great Depression of the 1930’s. Her prediction is ludicrous. I think it’s irresponsible. It’s damaging a lot of peoples portfolios. I know cities and states are having problems but I have seen them perform through six recessions and this recession is clearly the strongest and the worst since the Great Depression and yet I don’t believe there are going to be wholesale defaults.”
On whether prices of municipal bonds reacted to Whitney’s predictions:
“Yes but it’s hard to say whether or not that was the only thing that affected prices.”
On whether California will default:
“California’s chances of default are one tenth of one percent. If they ever default, in my opinion, it would be a technical thing, it would be solved in days.”
Watch the video here.Also check out:
