The predictin’ business ain’t easy. Star analyst Meredith Whitney made the bold call eight months ago that a record number of defaults would occur in the municipal space, as state and locals governments struggled to shore up their balance sheets.
Since the prediction, made Dec. 19 on a segment of CBS’ “60 Minutes,” much has happened, but not in the way Whitney said.
Bloomberg reports defaults fell 60% in the first half of 2011 compared with the same period last year, citing the Distressed Debt Securities Newsletter.
“Time is running out on the credibility of Meredith Whitney, who has yet to acknowledge that her eight-month-old prediction of widespread defaults this year in the market for state and local government debt is proving unfounded,” the news service taunts.