Bloomberg TVMunicipal bond expert Cate Long wrote a pretty serious take down of bank analyst Meredith Whitney’s new book on state economies in Reuters this morning.
Whitney detractors, today is your lucky day.
The analyst is probably as well known for her accurate (negative) forecast of Citibank as she is for her still inaccurate call that state municipal bonds are about to collapse.
Her newest book, ‘The Fate of the States: the New Geography of American Prosperity’ is another call to arms on the latter point. Long, however, argues that Whitney is about a year too late to be arguing that the states are going down the toilet (except for maybe Puerto Rico).
Whitney’s book may be a useful intro for those who have not followed the fiscal struggles of state and local governments over the past five years. At 206 pages it’s a fast read. But I would encourage readers to view it as the opinion of one analyst who has often been wrong. In one memorable case, the Nevada State Treasurer Kate Marshall went after Whitney for her errors in calculating the liabilities of her state.
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