Meredith Whitney Warns Of Massive Pain Coming For The States, 80K Layoffs On Wall Street
Meredith Whitney may not be ahead of the curve on this -- folks have been warning about this for awhile -- but it's significant that one of the most visible analysts on the street is warning about the economic health of the states and the systemic risk they pose to the economy. She predicts they'll need bailouts, but not sure they're really going to happen, given that it would require conservatives in states like Texas and Nebraska to vote for money to California and Michigan. Seems implausible.
BY THE WAY I HAVE REPORTED ON THIS FOR YEARS, AS THE HOUSING CRISIS CAME TO A HEAD IT WAS OBVIOUS TO ME THAT THE JIG WAS UP FOR THE STATES WHERE REAL ESTATE PRICES PUSHED PROPERTY TAX REVENUE STRAIGHT UP AND LEADERSHIP THOUGHT IT WOULD LAST FOREVER.