Comments on: Meredith Whitney’s “Great Migration” http://blogs.reuters.com/muniland/2013/06/04/meredith-whitneys-great-migration/ Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: EcouteSauvage http://blogs.reuters.com/muniland/2013/06/04/meredith-whitneys-great-migration/comment-page-1/#comment-2250 Thu, 06 Jun 2013 10:52:41 +0000 http://blogs.reuters.com/muniland/?p=12714#comment-2250 I also agree with Whitney. California has negative equity of at least $137 billion (per state auditor’s latest report) and as many as $600 billion (if accrued and contingent liabilities are included as they would be in private sector accounting). So one year the state ends up with a $1 billion surplus and that means it can now spend freely? This is absurd.

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By: gkhanna http://blogs.reuters.com/muniland/2013/06/04/meredith-whitneys-great-migration/comment-page-1/#comment-2249 Wed, 05 Jun 2013 18:31:56 +0000 http://blogs.reuters.com/muniland/?p=12714#comment-2249 With all due respect to Cate Long, she is exactly the type of analyst that Whitney was taking to task for being too complacent about the risks inherent in municipal finance. The fact there there are temporary budget surpluses or that demographic shifts haven’t materialized fully yet doesn’t completely undermine Whitney’s point. She never said they were going to happen overnight. I happen to think Meredith Whitney’s thesis is essentially correct will play out at the end. One has to live in California (or one of the other “housing bust” states) and simply look out the window to see the deep fiscal mess the cities are in. You are welcome to read my perspective on this topic here:

http://seekingalpha.com/article/1481651- straight-outta-stockton-meredith-whitney -comes-out-swinging-in-fate-of-the-state s?v=1370441607&source=tracking_notify

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By: surambaya http://blogs.reuters.com/muniland/2013/06/04/meredith-whitneys-great-migration/comment-page-1/#comment-2248 Tue, 04 Jun 2013 11:18:13 +0000 http://blogs.reuters.com/muniland/?p=12714#comment-2248 I actually agree with Ms. Whitney. Muniland is in a bunch of trouble and the first big city to hit the skids will be Detroit.

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