It’s actually remarkable the amount of piling on happening to Meredith Whitney right now.
Despite the fact that she originally came out with her big muni doom & gloom report last September, it’s now that she’s being attacked day in and day out.
Why the sudden rush of anger and denunciations?
This is an easy one. The fact is that Meredith Whitney is making it MUCH harder for people who have traditionally sold munis to do their jobs. Outlfows are intense, and that's why you see such a strong pushback from the likes of PIMCO and 'muni queen' Alexandra Lbenthal.
People are really territorial. She's a banking analyst, and people don't think a banking analyst can easily segue into munis, as if it's all the same thing.
In Moe Tkacik's New York Observer profile, she wrote:
Ms. Whitney's choice to make the public finances of states and cities the focus of her study is roughly analogous to that of a college student changing his major from electrical engineering to 16th-century Japanese art in the middle of the second semester of senior year (if such a decision could be somehow worth tens of millions of dollars)
This was Charlie Gasparino's big complaint... very few people have seen Meredith Whitney's actual report. Yet it's obviously influential, and causing muni outflows. Thus, there's no easy way to refute the exact points she's making.
This is just industry gossip: nobody knows how Meredith Whitney Advisory Group is doing as a business, but her detractors think she's just trying to get attention for it.
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