Meredith Whitney Discusses Guesstimating Defaults Over Egg Whites - Dealbreaker

Meredith Whitney Discusses Guesstimating Defaults Over Egg Whites

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Whitney doesn’t have specific numbers backing up her now- famous prediction, she said in a Jan. 30 interview. “Quantifying is a guesstimate at this point,” she said. “I was giving an approximation of a magnitude that will bear out to be correct.” A copy of the 43-page report doesn’t mention sizable defaults amounting to hundreds of billions of dollars. A person who has seen a long addendum that profiles the 15 top states said that the longer portion doesn’t, either. “We are not calling for any specific defaults within the scope of this report,” the document says on page 42. An opening summary says there will “invariably” be local defaults, without elaborating. “A lot of this is, You know it, but can you prove it?” Whitney said over a breakfast of scrambled egg whites with a chicken-apple sausage, a side of salsa and peppermint tea at the Four Seasons Hotel in Midtown Manhattan. “There are fifth-derivative dimensions that I don’t think I need to spell out to my clients,” she said. [Bloomberg]

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