Meredith Whitney: 'More Validation' Everyday Of Impending Muni Debt Crisis

Meredith Whitney: 'More Validation' Everyday Of Impending Muni Debt Crisis

She was right about Citigroup's fall from grace, and she's pretty sure about the municipal debt crisis, too.

Last December, on CBS's 60 Minutes, Meredith Whitney, the analyst made famous by her correct pre-crisis prediction of Citigroup's problems, said that U.S. municipalities would default on a massive scale by sometime this year.

Though her prediction has yet to come to fruition, she remains adamant, defending her stance on CNBC's Squawk Box early Wednesday, in spite of critics questioning her judgement.

"If anything, there has been more validation, so much more validation on a daily basis," Whitney said.

Indeed, Whitney now says the numbers she provided in the previous 60 Minutes interview have just been "getting worse" since she obtained more information, although that might prove inaccurate her specific default prediction last December.

"It's not as if I chose to go on 60 Minutes to make a specific prediction," Whitney says. "You don't choose 60 Minutes, they choose you."

Still, even when considering municipal defaults are down not up since 2010, Whitney stuck with her guns. "The muni defaults is not part of the larger issue," she told viewers. "Muni defaults [are] going to be a consequence of the incredibly precarious fiscal situation that the states are in."

With municipalities receiving what she estimates to be 40 percent of their operating budgets from the state governments, that could pose big problems for municipalities nationwide.

Watch Whitney's interview here:

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