There has been a lot of criticism about the alarmist type of talk that came from Meredith Whitney in a 60 Minutes interview on the topic of muni defaults back in December 2010. [Dec 19, 2010: 60 Minutes - States the Day of Reckoning] Most of the criticism has been leveled at the amount Meredith assumes will eventually be defaulted on, and the timetable. She seems to have backed off on the timetable in recent remarks but still seems to be sticking to her guns on the amount. While it seems doubtful any U.S. state will be allowed to go into default (read: white horses from D.C. will arrive), the issue is more at the local level.
Whitney was guest host on CNBC this AM and we have two videos on this topic and her broader views as well
Video 1 - 21 minutes
Video 2 - 6 minutes