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Do You Live In A Death Spiral State?
Forbes ^ | November 25,2012 | William Baldwin,

Posted on 11/26/2012 6:19:48 PM PST by Hojczyk

Don’t buy a house in a state where private sector workers are outnumbered by folks dependent on government.

Thinking about buying a house? Or a municipal bond? Be careful where you put your capital. Don’t put it in a state at high risk of a fiscal tailspin.

Eleven states make our list of danger spots for investors. They can look forward to a rising tax burden, deteriorating state finances and an exodus of employers. The list includes California, New York, Illinois and Ohio, along with some smaller states like New Mexico and Hawaii.

Let’s say you are a software entrepreneur with 100 on your payroll. If you stay in San Francisco, your crew will support 139 takers. In Texas, they would support only 82. Austin looks very attractive.

Ranked on the taker/maker ratio, our 11 death spiral states range from New Mexico, with 1.53 takers for every maker, down to Ohio, with a 1-to-1 ratio.

Conning rates North Dakota the safest state to lend money to, Connecticut the most hazardous. A state qualifies for the Forbes death spiral list if its taker/maker ratio exceeds 1.0 and it resides in the bottom half of Conning’s ranking.

(Excerpt) Read more at forbes.com ...


TOPICS: Crime/Corruption; Government; News/Current Events
KEYWORDS: bluestates; statecrisis; statedebt; top10
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1 posted on 11/26/2012 6:19:54 PM PST by Hojczyk
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To: Hojczyk

New Mexico

Mississippi

California
Alabama
Maine, New York, South Carolina,Kentucky, Illinois,Hawaii,Ohio


2 posted on 11/26/2012 6:23:49 PM PST by Hojczyk
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To: Hojczyk

Yes


3 posted on 11/26/2012 6:25:44 PM PST by null and void (The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.)
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To: Hojczyk

“Austin looks very attractive”

???

Has this person ever lived or drove through there??

The worst city in Texas


4 posted on 11/26/2012 6:30:12 PM PST by GeronL (http://asspos.blogspot.com)
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To: Hojczyk

Not so much a death spiral. CA is more like a head long plunge into the abyss.


5 posted on 11/26/2012 6:30:21 PM PST by socal_parrot (I hate to say I told you so, but...)
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To: GeronL

Austin = Velvet Ditch


6 posted on 11/26/2012 6:31:03 PM PST by Dinah Lord
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To: socal_parrot

Its too bad too. We need all the states producing.


7 posted on 11/26/2012 6:32:39 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Hojczyk
"The taker count is the number of state and local government workers plus the number of people on Medicaid plus 1 for each $100,000 of unfunded pension liabilities.

Seems an arbitrary formula -- and 4 of the 10 are red states. It also seems pretty obvious that you wouldn't move a factory to California -- but Alabama would be less obvious. Haven't Mercedes and Honda built factories in Alabama?

8 posted on 11/26/2012 6:36:46 PM PST by Sooth2222 ("Suppose you were an idiot. And suppose you were a member of congress. But I repeat myself." M.Twain)
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To: GeronL

I used to talk to an Austin girl online (an artist). She claimed she was a conservative but When I told her I lived not far from Ann Arbor she said she had always wanted to go there.


9 posted on 11/26/2012 6:36:55 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Hojczyk

Illinois has already started lobbying for the fedgov to fund their stunningly underfunded state pension system. Given their close personal relationship with Baraq, that probably makes it likely, and then the floodgates are open.

Since the fedgov itself is only a short distance from insolvency, I’m not sure it really makes much difference.


10 posted on 11/26/2012 6:38:09 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: cripplecreek

What about Michigan?


11 posted on 11/26/2012 6:49:21 PM PST by Big Horn (Rebuild the GOP to a conservative party)
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To: cripplecreek

hhmmmmmm

questionable right?


12 posted on 11/26/2012 6:49:49 PM PST by GeronL (http://asspos.blogspot.com)
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To: cripplecreek

hhmmmmmm

questionable right?


13 posted on 11/26/2012 6:53:04 PM PST by GeronL (http://asspos.blogspot.com)
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To: Big Horn

Michigan is actually improving. The first thing we did after the GOP took control in 2010 was to cut some 30,000+ college students off food stamps. There have been other welfare limits imposed as well as the elimination of the personal business property tax. Lots of other regulations are being rolled back every week.


14 posted on 11/26/2012 6:55:49 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: GeronL

She told me that her father was a rancher and I was thinking longhorns or something but she was talking about pigmy goats. LOL


15 posted on 11/26/2012 6:58:16 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: cripplecreek
When I told her I lived not far from Ann Arbor she said she had always wanted to go there.

LOL If she did she'd go back to Austin with a girlfriend.

16 posted on 11/26/2012 6:59:39 PM PST by hinckley buzzard
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To: cripplecreek

lol!!

*gasp*

lol!!

...
Sam Donaldson??


17 posted on 11/26/2012 6:59:39 PM PST by GeronL (http://asspos.blogspot.com)
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To: Hojczyk

South Dakota is begging for people to move there and build new businesses. Unfortunately, SD is situated in an ice cave.


18 posted on 11/26/2012 7:00:27 PM PST by rabidralph
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To: cripplecreek
As a Realtor, I foresee Michigan once more coming back to life. It will take a while, but I am positive it will happen.

Investors will begin purchasing blocks of those vacancies in Detroit, building nice hotels, Luxury Condos. Just have to wait to see what will happen to all the welfare crowd, maybe they can be driven out.

19 posted on 11/26/2012 7:04:02 PM PST by annieokie
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To: Hojczyk
NY State isn't number one!? I demand a recount! New York City deserves it's own ranking. And then the is Buffalo, or as I like to call it Detroit with less crime and more snow. I forgot Albany, or as I call it "Brasilia on the Hudson".
20 posted on 11/26/2012 7:04:02 PM PST by rmlew ("Mosques are our barracks, minarets our bayonets, domes our helmets, the believers our soldiers.")
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To: cripplecreek

Too funny. LOL!


21 posted on 11/26/2012 7:04:35 PM PST by TADSLOS (Welcome to the new Plastic Banana Republic- We''ll Make You Feel Good to be Poor)
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To: Hojczyk

I’m shocked that New Jersey isn’t on this list. I guess the one thing it has going for it as far as this list is concerned is that it’s simply too expensive for retirees to hang around here.


22 posted on 11/26/2012 7:06:12 PM PST by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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To: rabidralph

You mean North Dakota?

that’s where the oil boom towns are.


23 posted on 11/26/2012 7:07:09 PM PST by TurboZamboni (Looting the future to bribe the present)
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To: Hojczyk
California will be the first go into bankruptcy.
24 posted on 11/26/2012 7:08:48 PM PST by Logical me
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To: GeronL

Its a confusing world. I went past a longhorn ranch down the road from were I grew up on thanksgiving. (Triple R ranch) Apparently they’re one of the top breeders of Texas longhorns in Michigan.

http://www.rrrlonghorns.com/


25 posted on 11/26/2012 7:08:48 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Hojczyk
Austin looks very attractive.

Bear in mind that various F.R. Texans have stated that Austin is a hot bed of liberalism, one of the few in Texas.

26 posted on 11/26/2012 7:13:16 PM PST by Graybeard58 (What G.O.P.e. candidate is in store for us in 2016?)
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To: annieokie

The demolition of DelRey will make room for the new bridge, warehouses, and truck terminals. Its one of the worst areas of Detroit and those folks will probably get a better deal through eminent domain than they’ll ever get on the open market.


27 posted on 11/26/2012 7:14:55 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Hojczyk

Death Spiral State bump for later.........


28 posted on 11/26/2012 7:19:34 PM PST by indthkr
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To: cripplecreek

I’ve visited various areas in Michigan and on the whole, I have had pleasant experiences. Battle Creek, Lansing, Saginaw, Kalamazoo, Grand Rapids, Sault Ste. Marie.

The cities of Detroit & Flint do not represent Michigan any more than Chicago represents my state, Illinois.


29 posted on 11/26/2012 7:20:44 PM PST by Graybeard58 (What G.O.P.e. candidate is in store for us in 2016?)
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To: cripplecreek

Aren’t they always an artist?
My friends currently gabbing and met a guy on line....an artist.The guy goes from friends to friends homes looking for places to stay.


30 posted on 11/26/2012 7:22:35 PM PST by peteyd (A dog may bite you in the ass,but it will never stab you in the back.)
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To: Hojczyk

Forbes should be congratulated for coming up with the “death spiral state” concept — it’s a blast!


31 posted on 11/26/2012 7:23:03 PM PST by WashingtonSource
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To: Logical me
California will be the first go into bankruptcy.

Study the finances of Illinois, we are in a close race to the bottom with California.

32 posted on 11/26/2012 7:23:03 PM PST by Graybeard58 (What G.O.P.e. candidate is in store for us in 2016?)
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To: Graybeard58

Austin, Houston, San Antonio and Dallas :/


33 posted on 11/26/2012 7:28:14 PM PST by Bikkuri (Hope for Conservative push in the next 2-4 years..........)
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To: Graybeard58
My Michigan looks like this.

Image Hosted by ImageShack.us

Image Hosted by ImageShack.us

Image Hosted by ImageShack.us
34 posted on 11/26/2012 7:32:10 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Graybeard58

The best thing about Austin is that it’s only 10 min from Texas.


35 posted on 11/26/2012 7:34:01 PM PST by davetex (Sick of moochers)
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To: rabidralph

I’m always happy to telecommute anywhere. I don’t care how cold it gets I’ll telecommute in the dead of winter.


36 posted on 11/26/2012 7:36:24 PM PST by posterchild (Remember that thou art dust, and to dust thou shalt return.)
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To: peteyd

I’m an artist too but I keep my struggles to myself and don’t expect grants or anything.


37 posted on 11/26/2012 7:36:56 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Hojczyk

>>Austin looks very attractive.

It sure does. I’d like to help make Austin normal again.


38 posted on 11/26/2012 7:39:12 PM PST by Betis70 ("Leading from Behind" gets your Ambassador killed)
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To: Hojczyk

ping


39 posted on 11/26/2012 7:41:05 PM PST by TheCause ("that these United Colonies are, and of right ought to be, free and independent States")
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To: Hojczyk
Rhode Island isn't on the list?! That's just wrong. And low-tax, right-to-work states are on the list? Something funny about this.
40 posted on 11/26/2012 7:41:21 PM PST by teflon9 (Political campaigns should follow Johnny Mercer's advice--Accentuate the positive.)
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To: Hojczyk

Ping for later


41 posted on 11/26/2012 7:48:55 PM PST by Menehune56 ("Let them hate so long as they fear" (Oderint Dum Metuant), Lucius Accius (170 BC - 86 BC))
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To: posterchild

How do you do that there telecommutin’ thing anyway? I set here and I think real hard about where I wants to go but I don’t never seem to git nowhere, I winds up settin’ right here where I started at.


42 posted on 11/26/2012 8:00:43 PM PST by RipSawyer
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To: Graybeard58

I moved to TX last year and from what I can detect Austin is very liberal while So TX is heavily Dem as is the Big Bend area (artsy phartzy)but oddly enough Harris County (Houston) split evenly between Romney and Obama.


43 posted on 11/26/2012 8:10:48 PM PST by 03A3
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To: Graybeard58

Austin and inside the loop on Dallas, Fort Worth, San Antonio, and Houston. Throw in the counties along the Rio Grande for obvious reasons.


44 posted on 11/26/2012 8:14:01 PM PST by crusty old prospector
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To: cripplecreek
I don't know much about Michigan, never been there. All I can go on is like in my own City.

When the low life totally destroyed the inner city, it took a long time, BUT, it finally revived, investors bought on the cheap and turned it around. Great medical centers, hospitals, then luxury Apts., and Condos, Riverwalks, etc. VERY VERY nice.

I am sure some investors are already viewing Detroit for the same. There are Casinos there, right? So that is a draw.

Low life moving out the the suburbs, we're moving back to the city. rofl. As soon as they destroy the suburbs, we'll buy it back on the cheap, maybe one day they will understand the concept of TAKING CARE OF YOUR PROPERTY. That's life. rofl

45 posted on 11/26/2012 8:21:41 PM PST by annieokie
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To: annieokie

” Just have to wait to see what will happen to all the welfare crowd, maybe they can be driven out.”

Do a 180 in your thinking. Offer them candy ($); they’ll be happy to leave.


46 posted on 11/26/2012 8:28:09 PM PST by Rembrandt (Part of the 51% who pay Federal taxes)
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To: annieokie

There is a lot of wealth in the suburbs surrounding Detroit. My brother in law makes 6 figures working right downtown in Detroit. Apparently a lot of the bigwigs at the company he works for are happy that a new patent office just opened and believe it will attract work for them and ease the patent process for everyone.


47 posted on 11/26/2012 8:34:54 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: cripplecreek

“I used to talk to an Austin girl online (an artist). She claimed she was a conservative but When I told her I lived not far from Ann Arbor she said she had always wanted to go there.”

Nice job outing her. I guess the “artist” part must have gotten your antenna activated.


48 posted on 11/26/2012 8:35:57 PM PST by BobL (You can live each day only once. You can waste a few, but don't waste too many.)
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To: peteyd

“The guy goes from friends to friends homes looking for places to stay.”

Yes, but look at it this way: one guy puts that in his online dating profile, and another guy says he is an “artist who embraces the bohemian lifestyle”. Who do you think gets more interest from the ladies?


49 posted on 11/26/2012 8:38:48 PM PST by Boogieman
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To: BobL

She called herself “spiritual” but then she told me that she goes to a Unitarian church.

She got irritated when I called it the church of the whatever. Course, I’m Methodist so I can’t really criticize.


50 posted on 11/26/2012 8:38:57 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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