GO
Loading...

Street Fight: Muni Crisis Overblown?

The nation's municipalities face a wave of defaults, said financial analyst Meredith Whitney.

Of course Whitney is most known for her call, made before the financial system collapsed, that Citigroup was facing risky mortgage investments that would put pressure on the company, as the subprime mortgage industry collapsed.

Despite these credentials, some wonder if the muni bond crisis overblown? Certainly Daniel Clifton of Strategas Research Partners thinks so. He takes the contrarian view that the situation for state and local governments is improving.

But to hear the full conversation with Clifton, watch the video.

_____________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Jan. 19, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour owns (AA), (BAC), (F), (FXI) and (MPEL). Guy Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE) and (BTU). Finerman owns (AAPL), (BAC), (BP), (HPQ), (GOOG), (C), (MSFT), and (WFC) preferred. Joe Terranova Owns (GLD) Puts. Joe Terranova Owns (PCX) Puts. Terranova Owns (ACI) Puts. Joe Terranova Owns (TBT) Puts. Joe Terranova Owns (UPL), (VRTS), (PVH), (GM), (CVI), (CNQ), (LTD), (C), (PEP) and (CPX). Joe Terranova Is Short (JOYG).

GE is the parent company of CNBC

TIM SEYMOUR
Seymour's firm is short (BHP)

GUY ADAMI
Adami's wife works for (MRK)

KAREN FINERMAN
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is short (IJR)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (BBY)
Finerman's firm owns (BP)
Finerman's firm owns (HPQ)
Finerman's firm owns (IBM)
Finerman owns (JPM) and (JPM) leaps
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MCD)
Finerman's firm owns (MSFT)
Finerman's firm owns (WMT)

JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (IPI)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own (QCOM)
Accounts Managed By Kanundrum Capital Own (MS)
Accounts Managed By Kanundrum Capital Own (RKH)
Accounts Managed By Kanundrum Capital Are Long The Euro
Accounts Managed By Kanundrum Capital Are Long (XLE)
Accounts Managed By Kanundrum Capital Are Short The Yen

CARTER WORTH
Worth has no disclosures

STEVE CORTES
Cortes has no disclosures

VINCENT ANDREWS
Within the last 12 months, Morgan Stanley has received compensation for investment banking services from (MOS)
In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from (MOS)
Within the last 12 months, Morgan Stanley has received compensation for non-investment banking services from (MOS)
Withing the last 12 months, Morgan Stanley has provided investment banking services or has an investment banking client relationship with (MOS)
Morgan Stanley & Co. Inc is a market maker in (MOS)

DANIEL CLIFTON
Clifton has no disclosures

MIKE KHOUW
Cantor Fitzgerald & Co. have no disclosures on XLE

PETE NAJARIAN
Pete Najarian has no disclosures

CNBC.com with wires.

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report