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Fitch cuts Connecticut ratings on dim economy, fiscal constraints
Reuters ^ | May 12, 2017 | By Hilary Russ

Posted on 05/12/2017 1:40:34 PM PDT by Oldeconomybuyer

Fitch Ratings downgraded the state of Connecticut on Friday one notch to A-plus because of a dimming economic outlook and a lack of fiscal flexibility, making it the third-lowest-rated U.S. state on Fitch's roster.

The wealthiest U.S. state on a per capita personal income basis, Connecticut's economic growth has been "unusually slow and uncertain" during the current national economic expansion, and the state is expecting weak job growth in coming years, Fitch said.

Those chronic economic challenges and Connecticut's high budgetary liabilities have constrained the state's ability to maneuver financially, Fitch analysts said of reasons for the downgrade.

Revenue collections also came in far below projections through the month of April, failing to keep pace with rising expenses and adding to the state's deficit.

On Wednesday, Governor Dannel Malloy, a Democrat, said the state would drain its rainy day reserve fund and make one-time transfers from other funds to help close a $390 million revenue shortfall this year.

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


TOPICS: Business/Economy; Government; News/Current Events; US: Connecticut
KEYWORDS: democrats; liberalism; pensions; socialism

1 posted on 05/12/2017 1:40:34 PM PDT by Oldeconomybuyer
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To: Oldeconomybuyer

Payback’s a Fitch.


2 posted on 05/12/2017 1:46:56 PM PDT by Ken H (Best election ever!)
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To: Oldeconomybuyer

Like a typical democrat, mallow has no idea at all what it means to be at the head of a state. All he can think about is taking money from those who earn it, and giving it to those who guarantee that dems will remain in power.
No idea whatsoever about bringing in manufacturing or industry. Tax Whitey to death to pay all the ones who never earn a cent to pay the taxes that Whitey takes up the a$$.


3 posted on 05/12/2017 1:51:02 PM PDT by I want the USA back (Freedom of speech: an illusion that Americans hold fast to, although it disappeared decades ago.)
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To: Oldeconomybuyer

Delicious consequence ;n)

In recent related news ~

http://freerepublic.com/focus/f-news/3552034/posts

http://www.zerohedge.com/news/2017-05-10/connecticut-state-capital-prepares-bankruptcy-amid-collapse-hedge-fund-revenue

https://www.washingtonpost.com/business/connecticut-feels-effect-of-drop-in-super-rich-tax-payments/2017/05/07/5b8cbd64-334d-11e7-ab03-aa29f656f13e_story.html?utm_term=.6921f3846e46

http://www.courant.com/community/hartford/hc-hartford-bankruptcy-lawyer-20170509-story.html


4 posted on 05/12/2017 1:54:08 PM PDT by MarchonDC09122009 (When is our next march on DC? When have we had enough?)
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To: Oldeconomybuyer

Cut em....cut em to the bone, then cut some more just for good measure.
They got it coming and deserve everything they get.
Never let a liberal near the levers of power in government....NEVER.


5 posted on 05/12/2017 2:00:17 PM PDT by lgjhn23 (It's easy to be liberal when you're dumber than a box of rocks.)
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To: Oldeconomybuyer

Oh please, let there be a bankruptcy!


6 posted on 05/12/2017 2:03:32 PM PDT by PGR88
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To: Oldeconomybuyer

Garbage - they should be at junk bond status if this rating service was doing its job correctly. Businesses and people are fleeing the Nutmeg State. The wacky government even explored the idea of raiding Yale’s endowment for “revenue”. And they elected a lying nutjob like Blumenthal to the Senate.

If state bonds could be shorted, they’d be a great candidate.


7 posted on 05/12/2017 2:10:20 PM PDT by NohSpinZone (First thing we do, let's kill all the lawyers)
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To: Oldeconomybuyer

Death by Democrats


8 posted on 05/12/2017 2:20:03 PM PDT by headstamp 2 (Ignorance is reparable, stupid is forever)
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To: Oldeconomybuyer
and a lack of fiscal flexibility

Connecticut is America writ small. They ramped up spending through the roof, borrowed as much as they could, and instituted an extremely progressive tax system that shifts the burden heavily to the "rich." But Connecticut learned what a lot of other states have learned (and the US too). If you rely on the "rich" for taxes, you have an extremely unreliable tax base because the income of the "rich", in general, fluctuates to a much larger degree than taxes on the middle class. In a recession, there aren't many taxes from the "rich." So what are they going to do? A big Middle Class tax increase to pay for the high spending and debt service? Good luck. This is how the Welfare State ends.

9 posted on 05/12/2017 2:22:35 PM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Opinionated Blowhard

The “rich” also can more easily just leave and take their income with them.


10 posted on 05/12/2017 2:25:06 PM PDT by Reily
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To: Oldeconomybuyer
If you look at lists of "the richest states in the country" one of three states will always appear as *the* richest:

New Jersey...Maryland...or Connecticut.

And yet we see stories like this.

11 posted on 05/12/2017 2:55:46 PM PDT by Gay State Conservative (Deplorables' Lives Matter)
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To: Reily
The “rich” also can more easily just leave and take their income with them.

Don't know how familiar you are with Connecticut and its rich but I'm somewhat familiar with towns like Weston,New Canaan,Darien and Greenwich.It seems to me that the rich in towns like that have a good portion of their wealth tied up in their houses....houses in towns like that start at a couple of million and go up to 30 million plus.

If they try to leave they need to sell their houses...but to whom?

12 posted on 05/12/2017 3:02:48 PM PDT by Gay State Conservative (Deplorables' Lives Matter)
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To: Gay State Conservative

Actually Connecticut is one of the few states I have never been to!
So not familiar at all with it.


13 posted on 05/12/2017 3:53:23 PM PDT by Reily
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To: Ken H

;-)


14 posted on 05/12/2017 4:18:49 PM PDT by Flick Lives
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Guess he never made it off the need for those rides to grade school on the short bus. Same 2-dimension thinking a whole 5 minutes into the future.


15 posted on 05/12/2017 5:23:22 PM PDT by USCG SimTech
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To: Oldeconomybuyer

What happened to the Ella Grasso/William O’Neil/Tim Monahan Democrat...pro business Democrats...


16 posted on 05/12/2017 9:43:02 PM PDT by Deplorable American1776 (Proud to be a DeplorableAmerican with a Deplorable Family...even the dog is DEPLORABLE :-))
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