Whitney says Municipal Budgets at Inflection Point

Reiterating here previous public statements, Meredith Whitney sates that municipal budgets are reaching an inflection point. Budgetary cuts may now turn towards decisions between pensions and other contractual obligations versus needed services. If this outlook comes to pass this map may become more important.

I do not know if this is the short of decade or if it states that Whitney is full of it, but the price chart of many municipal bond funds (for instance the PIMCO Intermediate Bond fund shown below) are not showing this cataclysmic outlook.