Meredith Whitney says she stands by her call that hundreds of billions of dollars of U.S. municipal bond will default.
She said to CNBC: "Sadly, that's the size we'll be looking at," She added that seeking a strict timeline misses the point and that defaults are only part of a larger issue about state and local finances.
The municipal bond market is valued around $2.9T.
Ms. Whitney said that the market could see 50 to 100 defaults by local governments.
Now she pointed out the "dire" state of government budgets,"unfunded liabilities are threatening their finances", and many states may have to sell or privatize assets to raise cash.
She cited off-balance sheet debt expenses and unfunded pension liabilities that are problems that must be dealt with by the states.
"State governors agree with me," "It's the muni bond market that doesn't."
Dark Pools: Also worrisome, she says muni bonds is like jumping into a dark pool with "terrible" disclosure.
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