Meredith Whitney Turns Muni Call Into Book (Not Novel)

Meredith Whitney is still worried about municipalities and now she�s writing a book about it.

Bloomberg News

Whitney, appearing on CNBC this morning, confirmed she�s writing a book, to-be titled “Downgraded”, about the trouble that the country�s states, cities and local governments are in.

She said she�s worried about the problem, not just because of the municipal bond market, but because of what it means for the entire economy.

�I think that for the last three-and-a-half years I�ve spent so much time focusing on this issue because I really think it shapes the future of the American economy,� Whitney said. �The issue is so much bigger than the municipal bond markets.�

Whitney, of course, made a call over a year ago that the country would see up to100 municipal defaults.

The country didn�t see anywhere near that many. In fact, muni bonds did pretty well.

That didn’t stop her from defending herself or noting a few mild victories. But it led to quite a lot of criticism.

Whitney says she was �surprised� by the level of attention that call got, but used it as evidence that there really is an issue. She said people see trouble on their own local level and weren�t just taking her word for it, which is why it became such a big deal.