Whitney, Roubini, Schiff, Garzarelli…Oracle’s…NOT!
Meredith Whitney was flat out wrong. She got lucky once with the banks and wanted to be the 2007 Garzarelli. She overstepped with this call and completely missed it.
There have not been any sizable defaults and there won’t be. Certainly not 50 let alone 100. Absolutely absurd.
Any states and townships that have shortfalls will cut where they need to and get within budget. They won’t default. Even if they do the bondholders won’t lose the principal.
What we see in the media are the black swan predictors. You throw them out there and hope one comes true. If it ever does you look like the great all knowing oracle. Problem is that usually works once then everyone listens to your next big call and it fails always (Garzarelli, Roubini, Schiff, etc). Now they are just the boy who cried wolf. Listen to any of them at your own peril and your portfolio’s.
Who will be the next great pundit oracle? Who knows but you can enjoy listening to all the black swan event predictions by the old “oracle’s” and the new ones that are working to make their name.