Posted on 06/08/2013 9:42:22 AM PDT by george76
The Illinois pension saga just keeps getting worse. In response to the state legislature’s failure to pass a pension reform bill before adjourning, Fitch downgraded Illinois’s bonds from A to A- earlier this week. On Thursday Moody’s joined the party, lowering the state’s rating from A2 to A3. S&P is now the only agency not to have downgraded the state, but it is issuing its own dire warnings. As Reuters notes, Illinois now has the lowest credit rating of any state in the country even without the S&P downgrade, and the worst rating in its history.
The higher borrowing costs that accompany credit downgrades are bad news for a state already struggling with its finances. This fact is not lost on Governor Pat Quinn, who has called lawmakers back to Springfield for a special session to get something passed before the state is hit with another downgrade.
The Governor is right to be anxious for a budget fix. Illinois has allowed this problem to drag on far too long; each day of delay is costing taxpayers. Unfortunately, there’s still no reason to be optimistic that the special session will succeed where past efforts failed.
(Excerpt) Read more at blogs.the-american-interest.com ...
I think all of us on FR realize that some day soon, there will be federal bailouts for state pensions in blue locales.
Cali, Il, NY, etc.
Probably in the form of federally guaranteed muni bonds.
(that of course assumes the markets are still swallowing an unlimited number of Baraqqi/Bernanke/Lew minibucks)
However, California is trying as quickly as it can to make Illinois the state with the SECOND worst rating in history!!
If only democrats had been in charge, the state wouldn’t be in such trouble as it ... uh, wait, what?
Agree with you.
Good news for Wisconsin, Indiana, and Michigan.
The queers DEMAND they be allowed to GET MARRIED in IL, dammit to hell! Work on that issue. That is IL's top priority -- according to the GLBT 'community' pervs and the Huff-Po Chicago Moonbats anyway. (sinkin gaggots)[sic]
Nothing can go right when your state is run from your biggest city, not your Capitol. Texas has a Capitol and it’s not Houston.
Actually, S & P factored the anticipated inaction of the legislature this year into their downgrade in January. So they were the first, not the laggards.
By the way, gas in Chicago is now about $4.70/regular. But, that’s what it costs to live in the Workers Paradise!
It's $3.39 here and it is a worker's paradise.
Several refineries in the midwest are either shutdown or at reduced capacity. It is $4.20 in central Illinois.
All the Democrat states will go down the same landslide and all the dumb@asses who voted for the corrupt Democrats will start swarming into other states to start the whole crazy cycle all over again.
Too bad we couldn’t send all the Dem losers to live in one state and we could have all the other states. We could call the Dem state the Land of the Lotus Eaters.
Or the New Soviet Union.
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