Economic Development

Superwom-Analyst Meredith Whitney Reports On State Fiscal Health

Meredith Whitney announced today the publication of a 600-page report evaluating the financial condition of the 15 largest states in the Union, as measured by gross domestic product. Ms. Whitney is the one-time managing director with Oppenheimer & Co. who may be most famously–or is it infamously?–known for staking a decidedly bearish view on the financial sector prior to the emergency sale of Bear Stearns Companies and the fall of Lehman Brothers Holdings in the fall of 2008. She currently runs her own Firm.

The report, playfully entitled “The Tragedy of the Commons” after a definitive theory on human behavior of the same name, rates the budgetary vulnerability of fifteen states on four criteria: economy, fiscal health, housing and taxes. Ms. Whitney is said to employ her same unique perspective as she applied to the banking sector to warn that the gap between state spending and state revenue threatens municipal fiscal health, employment growth, and overall economic expansion in a manner underestimated by many, just as was the case with banking. According to Ms. Whitney, growth in these states–the lower-rated of which are mostly the larger economies, such as California and Ohio–will remain feeble precisely because of available salves, such as higher taxes.

A summary from Fortune‘s Shawn Tully appears here. Of interest to readers, the report rates North Carolina as fourth-healthiest of the fifteen states, scoring a “neutral” grade.

Mike Thelen is an associate in Womble Carlyle’s Real Estate and Real Estate Litigation practice groups. He regularly represents a wide variety of clients, from local governments to businesses, in both state and federal venues throughout North Carolina.

Categories: Economic Development

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s