Municipal Defaults Loom Large on the HorizonSubmitted by Michael Nystrom on Wed, 01/12/2011 - 23:07
As cities across the nation face increasing budget strains, the vocal group of experts warning about municipal defaults has gained a powerful member: Jamie Dimon.
JPMorgan CEO said he expects to see more U.S. municipalities declare bankruptcy, Bloomberg News reports. His concerns echo those of Meredith Whitney, the analyst who has said the next major financial crisis will come from a wave of local government defaults, and those of famed investor Warren Buffett, who has called the municipal debt situation a "terrible problem."
"If you are an investor in municipals you should be very, very careful," Dimon said, according to Bloomberg.