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 ...
New Mexico
Mississippi
California
Alabama
Maine, New York, South Carolina,Kentucky, Illinois,Hawaii,Ohio
Yes
“Austin looks very attractive”
???
Has this person ever lived or drove through there??
The worst city in Texas
Not so much a death spiral. CA is more like a head long plunge into the abyss.
Austin = Velvet Ditch
Its too bad too. We need all the states producing.
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?
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.
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.
What about Michigan?
hhmmmmmm
questionable right?
hhmmmmmm
questionable right?
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.
She told me that her father was a rancher and I was thinking longhorns or something but she was talking about pigmy goats. LOL
LOL If she did she'd go back to Austin with a girlfriend.
lol!!
*gasp*
lol!!
...
Sam Donaldson??
South Dakota is begging for people to move there and build new businesses. Unfortunately, SD is situated in an ice cave.
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.
Too funny. LOL!
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.
You mean North Dakota?
that’s where the oil boom towns are.
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.
Bear in mind that various F.R. Texans have stated that Austin is a hot bed of liberalism, one of the few in Texas.
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.
Death Spiral State bump for later.........
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.
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.
Forbes should be congratulated for coming up with the “death spiral state” concept — it’s a blast!
Study the finances of Illinois, we are in a close race to the bottom with California.
Austin, Houston, San Antonio and Dallas :/
The best thing about Austin is that it’s only 10 min from Texas.
I’m always happy to telecommute anywhere. I don’t care how cold it gets I’ll telecommute in the dead of winter.
I’m an artist too but I keep my struggles to myself and don’t expect grants or anything.
>>Austin looks very attractive.
It sure does. I’d like to help make Austin normal again.
ping
Ping for later
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.
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.
Austin and inside the loop on Dallas, Fort Worth, San Antonio, and Houston. Throw in the counties along the Rio Grande for obvious reasons.
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
” 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.
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.
“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.
“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?
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.
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