Ms Whitney predicted "hundreds of billions" in defaults within a year of
her pronouncement. Which totally didn't happen.

No doubt eventually munis will fade compared to other investments. But a
prediction has to be time specific, it seems to me. Otherwise it doesn't
amount to much.

I regret my initial tone in my reply.



On Fri, Jul 20, 2012 at 6:27 PM, Sabri Oncu <[email protected]> wrote:

> Max:
>
> > Are you high?
> >
> > If you bought a muni index in Dec 2010 you'd be up three percent now.
>  Not
> > too rich, but in stark contrast to her clownish prophecies.
>
> On another note, managing Munis is one of the most boring things you
> can imagine Max, as I know from my experience with a few institutional
> money managers. Being assigned to the Muni department is one of the
> worst punishments at such places. You just buy the Munis and sit on
> them. That is how it works.
>
> It is like the difference between a glacier and a turbulent river.
> What is not known is that a glacier is a turbulent river as well,
> except that glaciers flow on a longer time scale. Also, they have been
> marketing the Munis as safe things to the well-to-do for quite some
> time (for the last three years or so), so much money has been diverted
> to the Munis in the past few years.
>
> It is just a matter of time.
>
> Best,
> Sabri
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