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Evidence love -- thank you.
Well yesterday was our anniversary one year I get -- -- just don't have either is pretty today is the one university of Meredith Whitney's -- prediction of massive defaults in the Muni bond market.
Charlie -- -- -- to score her bold prediction one -- -- -- first Charlie you have some breaking news on efforts to save European.
So we should point out that the European politicians are still haggling know the details of this this sort of bailout plan.
From what I understand it's a lot like what we reported last week that we reported first.
That Larry -- that a BlackRock the big money management firm was pushing European leaders essentially adopt the TARP plant something like the original TARP within -- I did that the toxic debt.
Off the balance sheets of the banks that hold it hold the stuff now that talks about the talks -- you know for us back in 2008.
Was mortgage backed securities CBOs this is Greek debt and that's what we're hearing right now.
That as part of this plan at least this I got this from a Wall Street CEO today as part of this plan Greek bond holders those -- the banks.
We'll take a huge haircut on the deal they will they will they will basically have to settle for something like a 20% decline in there in the value of their holdings.
If this thing happens at least that's what their eyebrow at eyeballing it right now listed.
It's better than nothing but hate if you think about it that -- Greek debt could be worth it zero right now.
But they're talking at least a seven a 20% haircut on Greek debt we should point out that many of the banks hold Greek debt at -- so even a 20% decline.
Is a big decline but would have to wait to see with those details on that's what Wall Street sources.
With knowledge of the bailout talks are talking about now -- -- update this later let's get back to Whitney which is very region Meredith Whitney.
I think the -- -- was a little bit off because I don't think it's news that she's wrong.
It's knows just how what -- she really is I mean she predicted.
Hundreds of billions of dollars of the -- that.
Issuers would default over the year and by the -- You -- mark the year from the date she issued her now infamous report which Fox Business was the first to get their hands on and that was that's today.
As of today there's been a lot less than that we're talking about may be a billion dollars of the fall so far.
-- be a handful.
Of the issuers have defaulted on these things not the not the fifty to 100 and clearly they're not big.
Big bond issuers and I will tell you this about -- Meredith Whitney this -- Really hurt her reputation because it -- -- With small investors and here's -- thing.
Small doses -- the biggest the biggest buyers of municipal bonds which she made that call about a year ago by the -- she went on CNBC.
That's when the market started to implode and here's why this might be regulatory issue if you look at a report and I looked at a report I read it.
I guess that we were the first to get -- one of the few media outlets savage.
There is very little analysis of the faults and predictions in her report it differed markedly from -- public statements.
And I'll -- somebody in a regulatory capacity should ask why did you throw fuel on the fire.
When you didn't really have they did did did did -- analysis to back it up on county look at that report showed you guys later.
It says nothing about -- -- defaults it doesn't have any sort of predictive.
Sort of analysis of why that might happen it is the strangest thing that she went on the air to started to you know essentially what touting her coverage of Munis.
What are coverage of Munis that was sent to a clients really didn't talk about the -- so it's a bizarre thing she tanked the market.
If I were betting man.
And we we do have a -- to -- -- -- she generally does not return our -- in general if you never like I challenge and I mean -- -- explain yourself I mean -- -- known her I was friends with a permit for a while.
You know I knew I was from when I was at CBC.
I was the only one who took her initial cool about the banks from -- accurately predicted that the bank to 2007 we're gonna need to -- be recapitalize particularly Citigroup I was -- -- took it seriously.
I'm willing to take receives if she tells me how she gets that number and here's the -- with the press coverage when people put her on the air.
They never ask her how she came to that her report clearly doesn't show it and I will say this.
I think regulators have to get involved and stay -- you I mean why did she throw fuel the fire I mean what are her clients or short the Muni market.
And why would you do that you know you know.
It is certainly interest think it is a bizarre scenario because listen I I've written a lot about how that municipalities are suffering.
And need to cut -- -- very difficult times because of the Great Recession there's no doubt that municipals.
Obvious values -- being squeezed looked -- right.
But remember to go to the full route even if you're central falls Rhode Island declare bankruptcy.
-- a big thing by the -- I don't believe they've defaulted on the debt even though the that they could bankruptcy why.
And you cut out the market and by what debt service is not your biggest -- it's one of the smaller payments telling good stuff thank you and I guess --
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