Meredith Whitney: 50-100 Municipalities Could Default (60 Minutes Video)

Watch this must see 60 Minutes video "State Budgets: Day of Reckoning" featuring analyst Meredith Whitney, New Jersey Governor Chris Christie, Illinois state Comptroller Dan Hynes etc.
"How accurate is the financial information that's public on the states? And municipalities," Kroft asked.

"The lack of transparency with the state disclosure is the worst I have ever seen," Whitney said. "Ultimately we have to use what's publicly available data and a lot of it is as old as June 2008. So that's before the financial collapse in the fall of 2008."

There's not a doubt in my mind that you will see a spate of municipal bond defaults," Whitney predicted.

Asked how many is a "spate," Whitney said, "You could see 50 sizeable defaults. Fifty to 100 sizeable defaults. More. This will amount to hundreds of billions of dollars' worth of defaults."

I've been covering the municipal financial crisis for 2.5 years now. Click: Municipalities or Municipal bonds for the archive. Watch the 60 minutes video from 12/19/2010 after the jump.



Source: http://www.cbsnews.com/video/watch/?id=7166293n&tag=contentMain;contentAux

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