How Will Muni Bond Defaults Affect The Average Joe?

On CNBC this morning, banking analyst Meredith Whitney explained how the average Joe will be affected by the anticipated municipal bond defaults.

“It absolutely affects you as a taxpayer,” Whitney said. “Whenever your state is under-funded, you as a taxpayer are legally obligated to make up the difference.”

Of the eight million job losses so far, she said that five million have been through small businesses.

“Small businesses are not going to be able to hire the way they have,” she continued. “The problem with large corporations adding more jobs, and I believe they were, you've got a [several] state and local governments cutting jobs.”

The biggest cuts, she says, have yet to come. Expect the biggest cuts to arrive in the spring.