Skip to comments.Meredith Whitney Is About To Seriously Double Down On Her Muni Doom Prediction
Posted on 02/21/2012 7:56:46 PM PST by blam
Meredith Whitney Is About To Seriously Double Down On Her Muni Doom Prediction
Feburary 21, 2012
Meredith Whitney first predicted widespread muni doom in late 2010, and so far that hasn't come to pass at all.
Since then, her reputation has definitely taken some hits, but she's not giving up on her big call by any means.
According to Kevin Roose at DealBook, Whitney will be coming out with a new book in December called: Downgraded: Why the Next Economic Crisis Will Be Local.
The book is being put out by publishing house Portfolio.
Dealbook posted this paragraph from the publisher's statement on the deal:
Since late 2008, dozens of American school districts, agencies, towns and cities have been taken under state control due to their inability to manage their own finances and pay their debts, Portfolio said in its statement explaining the books premise. According to Whitney, the evidence points to a mounting fiscal crisis in Americas towns and states that will drive a political and economic wedge between the haves and have-nots.
(Excerpt) Read more at businessinsider.com ...
Buy more ammo.
She is correct, but the timing of the fun times in muni bonds, who knows. Invest in Detroit bonds!/s
“...coming out with a new book in December...”
I believe the dear lady will be “a day late and a dollar short”. The excrement is going to hit the fan WAY before next December, and I’m not buying anybody’s damned books!!!
10 High Profile resignations at banks across the world in the past 2 weeks
February 19, 2012
If you’re a producer and not a taker, you’re automatically a ‘have’. Somehow, the productive citizens have become the enemy.
BHO proposes to change the tax status of income derived from munis, meaning he is taking the exampt out of these tax exempt instruments. Of course, anyone can understand how it will cause the price of the bonds to drop to make up for the change in after-tax yield.
Looks like your list is shy a few:
Romanian prime minister and cabinet resign en masse
2/20/12 (GERMANY) GERMAN PRESIDENT Christian Ruff resigns (financial corruption charges)
RESIGNATIONS FROM WORLD BANKS:
(1) 9/25/11 (SWITZERLAND) Bank chief resigns over £1.5bn rogue trader crisis
(2) 10/29/11 (CHINA) Resignations Suggest Shift for China’s Banks
(3) 11/01/12 (INDIA) More directors of the Beed district bank resign
(4) 11/21/11 (JAPAN) UBSs Japan Investment Banking Chairman Matsui to Resign
(5) 11/29/11 (Iran) Iran’s Bank Melli CEO Resigns Over Loan Scam
(6) 12/15/11 (UNITED KINGDOM) Senior private banker resigns from Coutts [a very exclusive private bank]
(7) 12/22/11 (FRANCE) Societe Generales Investment Banking Chief Steps Down
(8) 1/05/12 (UNITED KINGDOM) Chief executive of Saunderson House [Private Bank] steps down
(9)1/09/12 (SWITZERLAND) Switzerland’s central bank chief resigns
(10) 1/12/12 (United Kingdom) Lloyds head of wholesale quits
(11) 1/19/12 (SPAIN) Spanish bank Santander’s Americas chief quits
(12) 1/20/12 (JAPAN) Normura’s head of wholesale banking quits
(13) 1/29/12 (NEW ZEALAND) New Zealand Reserve Bank Governor Alan Bollard to Step Down in September
(14) 1/21/12 (Greece) Banks’ top negotiator quits Greece, but talks go on
(15) 2/06/12 (INDIA) Dhanlaxmi Bank CEO Amitabh Chaturvedi quits:http://www.livemint.com/2012/02/06160111/Dhanlaxmi-Bank-CEO-Amitabh-Cha.HTML
(16) 2/07/12 (INDIA) Falguni Nayar quits Kotak Mahindra Bank
(17) 2/07/12 (IRAN) Iran denies central bank resignation rumor (don’t believe until its denied?)
(18) 2/09/12 (VATICAN) Four Priests Charged In Vatican Banking Scandal
(19) 2/10/12 (INDIA) Tamilnad Mercantile Bank CEO resigns
(20) 2/13/12 (KUWAIT) Kuwait Central Bank CEO resigns
(21) 2/14/12 (NICARAQUA) Nicaraqua Central Bank Pres Rosales resigns
(22) 2/14/12 (UNITED KINGDOM) Social finance pioneer Hayday steps down from Charity Bank
(23) 2/15/12 World Bank CEO Zoellick resigns
Did the White House tell the World Bank president that he’s out?
(24) 2/15/12 (SLOVENIA) Slovenia TWO largest Banks CEO’s (2) resign
(25) 2/15/12 (KENYA) Governor of Kenyan Central Bank to Resign
(26) 2/16/12 (GHANA) Ken Ofori-Atta steps down as Executive Chair of Databank Group
(27) 2/16/12 (SAUDI ARABIA) Saudi Hollandi Banks Managing Director Quits
(28) 2/16/12 (AUSTRALIA) Anz Bank CFO Australia resigns
(29) 2/16/12 (AUSTRALIA) Royal Bank of Scotland Austrailan CEO Stephen Williams resigns
(30) 2/17/12 (USA) Blankfein out as Goldman Sachs CEO by summer
(31) 2/18/12 (PAKISTAN) AJK Banks executive steps down
(32) 2/20/12 (RUSSIA) Head of Russian Bank Regulator Steps Down
(33) 2/20/12 (SWITZERLAND) Credit Suisse Chief Joseph Tan resigns
(34) 2/10/12 (KOREA) Korea Exchange Bank chief steps down
Well, it’s good to see from that list of perps that there are no corrupt American CEO’s and banksters. /s/
I just finished writing a pretty interesting book on “Biflationary Depression”. It all ties together qith what Meredit and multiple other gloomsday writers are saying. We are bankrupt on multiple levels, the only hope of the banking and political class is that the Fed will paper it all over. Trouble is, you really don’t know whether that will lead to inflation in any given sector, or deflation as velocity seizes up. I’m calling it for both, Biflation. Gold up, falling residential and assets, oil up,loan velocity down. Rinse and repeat.
A fun time will be had by all.
The banks and construction companies attempted to get a $40 million bond dumped on residential property owners on Pocatello and Chubbuck Idaho. The funds were for renovation of a sports facility at ISU. The citizens revolted. We could see the current troubles on the horizon. Bad news for muni bonds. We put it on the ballot and voted it down with 72% NO!
Presuming the financial balloon goes up earlier on in the year, and presuming that it doesn't result in an immediate descent into chaos the likes of which result in some kind of executive order canceling elections and also doesn't trigger immediate CWII, how would the "Obama" administration react? More bailout? That doesn't seem like it would go over well with the electorate. If he's trying to
steal win another term, how does something like this help him? Or do you think he'll be able to "finish the job" (US) in just one term?
Thanks for the Ping, BD.
Yes it is isn’t it?
And, perhaps, one step ahead of the law in some cases?