In the words of now famous Wall Street analyst Meredith Whitney, the state-to-state shortfalls are "certainly the largest threat to the US economy." (CNBC) Last September, Whitney -- known as "The Prophet of Doom" -- released a 600-page paper with this bold prediction: "States are poised to be the next credit crisis."
Some Capital Hill policymakers even suggested passing a bill that would enable states to declare Chapter Nine bankruptcy. In a January 21 New York Times article, one pro-state bankruptcy official expressed his concerns:
"All of a sudden there's a whole new risk factor. Beyond short-term budget gaps, states have deep structural problems like insolvent pension funds that are diverting money from essential public services like education and healthcare."
MyView
The debt that is issued can be quantified. The capability of repayment is also quantifiable. That is what Meredith Whitney has researched over thousands of pages of documents to make herself being called the "Prophet of Doom predictions". I believe she has put in lots of man hour before she make this comments. Hence, the collapse is predictable. It is a matter of timing, give and take, 6 months, it will eventually "pop".
MyView
The debt that is issued can be quantified. The capability of repayment is also quantifiable. That is what Meredith Whitney has researched over thousands of pages of documents to make herself being called the "Prophet of Doom predictions". I believe she has put in lots of man hour before she make this comments. Hence, the collapse is predictable. It is a matter of timing, give and take, 6 months, it will eventually "pop".
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