We?re hoping next year offers clearer sailing for the economy, but we worry that analyst Meredith Whitney may be more right than wrong about the looming government debt crisis. Whitney, who made her name predicting the widespread collapse of the mega-banks, told ?60 Minutes? last weekend that significant municipal debt defaults ? as many as 100 ? are coming next year.
?It has tentacles as wide as anything I?ve seen,? she said.
We understand her fear. Governments large and small have been notoriously slow to curb their spending habits, and it?s likely that financially teetering cities will make a splash in the headlines next year.
But we?re heartened by comments from muni bond experts who say Whitney is exaggerating the problem. We hope they?re right, for a panic in municipal debt would no doubt drag down this very slow recovery.
We?re hoping next year offers clearer sailing for the economy, but we worry that analyst Meredith Whitney may be more right than wrong about the looming government debt crisis. Whitney, who made her name predicting the widespread collapse of the mega-banks, told ?60 Minutes? last weekend that significant municipal debt defaults ? as many as 100 ? are coming next year.
?It has tentacles as wide as anything I?ve seen,? she said.
We understand her fear. Governments large and small have been notoriously slow to curb their spending habits, and it?s likely that financially teetering cities will make a splash in the headlines next year.
But we?re heartened by comments from muni bond experts who say Whitney is exaggerating the problem. We hope they?re right, for a panic in municipal debt would no doubt drag down this very slow recovery.
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