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Dire States: Muni-Bond Default Estimate $100 Billion

Move over Meredith Whitney. Another famed strategist is predicting that the municipal bond market is facing terrible woes.

”A consulting firm founded by economist Nouriel Roubini said there could be close to $100 billion of municipal-bond defaults over the next five years,” writes the Wall Street Journal.

Of course they don’t call Roubini Dr. Doom for nothing. He skews a tad bearish.

Seems like a good time for a second (or third) opinion. For that, we turn to another famed Wall Street figure; muni bond investor Alexandra Lebenthal, of Lebenthal & Company.

What does she have to say? Watch the video now!



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Trader disclosure: On March 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (BP); Seymour owns (F); Seymour owns (FXI); Seymour owns (GE); Seymour owns (GM); Seymour's firm is short (POT); Seymour firm is short (SU); Seymour's firm owns (TTM); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's firm is short (XRT); 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 And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (BBY); Finerman's Firm And Finerman Own (BP); Finerman owns (C); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's firm owns (M); Finerman's Firm And Finerman Own (MSFT); Finerman's firm owns (TGT); Finerman's Firm Owns (WMT); Terranova owns (VRTS); Terranova owns (C); Terranova owns (UPL); Terranova owns (ABT); Terranova owns (MS); Terranova owns (PBR); Terranova owns (BAX); Terranova owns (TEVA); Terranova owns (CVI); Terranova owns (RSX); Terranova owns (SU); Terranova owns (CNQ); Weiss owns (WFT); Weiss owns (BTU); Weiss owns (MEE); Weiss owns (DVN); Weiss owns (COP); Weiss owns (HK); Weiss owns (AAPL); Weiss owns (QCOM); Weiss owns (MSFT); Weiss owns (CSCO); Weiss owns (MXIM); Weiss owns (HBAN); Weiss owns (JPM); Weiss owns (FAS); Weiss owns (AGU); Weiss is short (X); Weiss owns S&P puts

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Seabreeze Partners Management owns (YHOO)
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An employee of Citigroup Global Markets or its affiliates is a trustee of (TGT)
An Associate of Citigroup Global Markets holds a long position in the securities of (HD)
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Citigroup Capital Markets is a market maker in the publicly traded equity securities of (CVS), (M), (COST)

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Gordon has no disclosures

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