The financial challenges states face could be the next systemic risk within the financial markets, according to Meredith Whitney, CEO of the Meredith Whitney Advisory Group.


Category: Credit, Video

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6 Responses to “Whitney: States Are Next Credit Crisis for US”

  1. Deborah says:

    “dodge the credit bullet.” I wonder what she meant by that. Banks finally have to mark down assets? Foreclosures finally go through? ???

  2. Carse says:

    Interesting and obviously, Whitney has done her home work. I would not bet against her in a poker game either.

  3. Carse says:

    Deborah states: “dodge the credit bullet.” I wonder what she meant by that. Banks finally have to mark down assets? Foreclosures finally go through? ???

    I believe Whitney means, As long as the Fed continues the purchase of asset backed securities, everybody remains afloat.

  4. V says:

    Interesting comments regarding bonuses.

    Will people really leave and say “it’s not worth it”, simply because they won’t be getting bonuses like they did at the peak? Whats wrong with regular salary?

  5. The states always will be a credit crisis, not only because their politicians are wasteful and crooked, but more importantly, because they do not receive enough money from the federal government. The states (and the counties and the cities) are not monetarily sovereign. ( http://rodgermmitchell.wordpress.com/2010/08/13/monetarily-sovereign-the-key-to-understanding-economics/ ).

    Because of inflation, all political entities must have an increasing nominal amount of money. However, because the states are not monetarily sovereign, they cannot create money, so they must obtain this additional money either from exports or from the federal government. State taxes do not increase the money supply in a state. It’s difficult for all states to be net exporters, so they are left with reliance on the federal government, which is monetarily sovereign.

    Rodger Malcolm Mitchell

  6. Carse says:

    RodgerMitchell Says: …

    Carse states: As a tax payer, investor, and believer in the US Constitution, which I gave up my soul during Vietnam for, and as a veteran– I object