“You could see 50 sizeable defaults. Fifty to 100 sizeable defaults. More. This will amount to hundreds of billions of dollars' worth of defaults.” We know that a couple of defaults in municipal markets are enough to wreck havoc in the entire market. The municipal bond market is $3 trillion in size. Fifty to one hundred sizeable defaults worth hundreds of billions of dollars will be more than enough to destroy the entire municipal bond market. David Einhorn’s favorite credit rating agencies don’t see any reason for concern in the municipal bond market. Meredith Whitney criticized Standard & Poor’s (MHP) and Warren Buffett’s Moody’s (MCO). We all know that a couple of defaults in municipal markets are enough to wreck havoc in the entire market. "When individual investors look to people that are supposed to know better, they're patted on the head and told, 'It's not something you need to worry about.' It'll be something to worry about within the next 12 months," said Whitney. Here is the video.