Meredith Whitney is on Squawk Box this morning, and we’re 100% sure she’ll be talking about the muni det fiasco she sees in 2011.We’ll be covering key highlights live.
- The conversation starts with JPMorgan and the dividend discussion. Rather than paying out cash, she favours JPMorgan acquiring in Asia, in particular standard chartered. This is the time to make major strategic acquisitions.
- On the housing mess and where we are in the process? “Who knows?” Certainly the robosign issue has been put to bed.
- Now she’s talking the big topic: munis… “We’ve never said that any stated would be default.” It’s municipalities that are the big risk. Michigan has even said many municipalities will default. It’s not so alarming when you put it in broader context. The people who are contesting it are the muni bond brokers.” The gist: nothing about her view should be seen as all that radical.
- There will be defaults and cuts across the board.
- Carl Quintanilla asks a tired question about why all the healthy states are “red” and all the sick states are “blue” which is absurd since Florida is one of the sick states, and has been red at the local level, and because Texas is clearly ill as well.
- This is all going to come to a head in June when Federal support disappears.
- As for when she’ll be vindicated: She says she is everyday.