Meredith Whitney made for a lot of headlines with her doomsday call for municipal bonds a couple of years ago.
In the interview below she discusses the fact that she has spent the last four years studying the financial health of the various states and believes that many of them are now at an inflection point where something has to be done.
She isn't necessarily calling for bankruptcies and defaults but for action such as reductions to pensions, social services and budgets.
She calls what the states are in a "feedback loop from hell," where not only the individual but also the government is overly indebted. Taxes need to be cut to help the people but can't be because the governments badly need the revenue.
In the interview below she discusses the fact that she has spent the last four years studying the financial health of the various states and believes that many of them are now at an inflection point where something has to be done.
She isn't necessarily calling for bankruptcies and defaults but for action such as reductions to pensions, social services and budgets.
She calls what the states are in a "feedback loop from hell," where not only the individual but also the government is overly indebted. Taxes need to be cut to help the people but can't be because the governments badly need the revenue.
