Meredith Whitney on 60 Minutes: Expect 50+ muni bond defaults in 2011

Mixed economic data are marginally improving investor sentiment despite lackluster earnings reports following strong equity market gains yesterday. However, stocks are on track to close out October firmly in the red.

For over a month, I’ve been concerned that markets have been pricing in a pair of conflicting economic scenarios. We first laid out the paradox in early December: equity investors say that they are hopeful for a soft landing for the economy yet seem to relish signals of more overt weakness.