Remember Meredith Whitney?

Last year she predicting "hundreds of billions" in municipal bond defaults for 2011. So far she's waaay off, in the first half of the year there were $511 million of muni defaults. However that number is almost going to double today as Harrisburg filed for bankruptcy. Still a far cry from "hundreds of billions" but if it works out well for them maybe other heavily indebted municipalities will follow suit. There are certainly no shortage of those.

http://www.reuters.com/article/2011/10/12/harrisburg-bankruptcy-idUSN1E79B0DS20111012