Meredith Whitney has come under some criticism of late. She made a bet that the municipal bond market was is going to go belly up thanks to fiscal irresponsibility. Market players have stated that while there are certainly issues within the market, and financial problems scattered among the issuers, to make such an outrageous claim is ... bull***t. Here are a couple of problems with her call in my opinion, and some of them are outlined in the article linked below:
-Meredith Whitney's new firm, is trying to enter into the business of rating municipal debt issuance. A call of this nature is certainly filled with self advertising
-The municipal bond market is filled with investors that are looking for protection of assets. These people are often times very close to retirement or already retired and in very safe asset classes. While some people will say she is doing her job, this call probably created more phone traffic from investor to manager than we have seen in a while. The sleep lost is probably creeping up to levels that have certainly crossed the "undeserving" mark.
-Why do we continue to care this much about one lady who made one correct call. This is one of the issues discussed in the article. I feel like Meredith Whitney is quoted as often or more often than Warren Buffet, or Carl Icahn (people with a background in being unbelievably right more often than not). Go away Meredith.
Here is the article ... http://www.cnbc.com/id/41469440
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