Category: municipal bankruptcy

Rep. Nunes and Sen. Burr Introduce PEPTA: Another Threat to Municipal Bonds

This is the first in a four part series on Public Employee Pension Transparency Act of 2013, also known as PEPTA. More and more, Congress appears to be considering legislation that is based on anecdotal and inaccurate information and not on good public policy or the facts. That certainly was the case when the House last

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Muni Default & Bankruptcy-Chasing Continues

For a moment I thought it was April Fool’s Day, not Leap Day.  Why? Former Kansas City Mayor Mark Funkhouser, now with Governing, blogged on February 29 that Stockton, California’s plan to declare default on $2 million in debt payments might be evidence that Meredith Whitney’s 2010 prediction of 50-100 sizeable muni defaults in the

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Meredith Whitney’s Misinformation Campaign

Almost six months ago, Meredith Whitney – the controversial financial investor who made her name by predicting the recent troubles for Wall Street banks  – set off a firestorm in financial markets by claiming that “social unrest” was coming in the form of ”50-100 sizeable municipal defaults.” She’s back this week with an op-ed in

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Crying Wolf on Municipal Defaults, Part 2

Here we go again.  Meredith Whitney, the Wall Street analyst who appeared on CBS’ 60 Minutes in December and predicted “50-100 sizeable municipal defaults” totaling “hundreds of billions of dollars,” appeared on CNBC this morning and claimed that there would be “indiscriminate selling” of municipal bonds because “local leaders want to default on debt investors

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