He doesn't sound like he's quite on board with the big doom predictions, but Jim Chanos is clearly more in the Meredith Whitney camp than many of the other investors who have chimed in on the muni question.

On CNBC, he said the state situation is ominous, and that in a sense they are insolvent.

"I think her general sense was correct," he says, and by that he means that investors just aren't getting compensated for the risk they're taking with munis, especially considering the low yields.

Click here to see more on his appearance on TV >