Whitney Deflects Criticism, Insists Muni Meltdown Coming

Wednesday, 12 Jan 2011 10:16 AM
By Dan Weil

Financial analyst Meredith Whitney has taken a lot of heat for her recent prediction that hundreds of municipalities are headed for default on their debt. But she’s not backing off her prediction and says muni bonds are headed for a plunge.

"When you have the first group of defaults you will see indiscriminate selling that would be a buying opportunity for some," the president of Meredith Whitney Advisory Group tells CNBC.

"There has been such complacency in the market and muni investors have been talked down to for so long.â€