Posted on 06/16/2017 7:28:51 AM PDT by Stopthethreat
A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt. At the moment, it's impossible for a state to file for bankruptcy protection, which is only afforded to counties and municipalities like Detroit.
Chapter 9 bankruptcy protection could be extended to states if Congress took up the issue, although Stanford Law School professor Michael McConnell noted in an article last year that he believed the precedents are iffy for extending the option to states. Nevertheless, Illinois is in a serious financial pickle, which is why radical options such as bankruptcy are being floated as potential solutions.
Ratings agency Moody's Investor Service earlier this month downgraded Illinois' general obligation bonds to its lowest investment grade rating, citing the state's growing pile of unpaid bills and its mounting pension deficit. Illinois, by the way, has the lowest credit rating of any state. Lower ratings mean higher borrowing costs, since lenders view such borrowers as riskier bets.
(Excerpt) Read more at cbsnews.com ...
Neither can countries. Except if you are Greece.
Great observation, I’m in the other end of “downstate” but the same is true. They always tell me “Chicago is the economic engine of Illinois”. Well, I reply, how long do you suppose that engine would run without any freaking FOOD? It’s as if you moved Manhattan into a corner of Iowa - the state would turn blue on the basis of sheer numbers. You can win three counties and become governor in IL - Pat Quinn did.
In 1847 and 1933 Arkansas went bankrupt.
its on their hands...
I wish only one thing...that all state/county/city pensions in Illinois are paid ONLY to those who stay in the state and live in the crap they have created...
I’ve been to Vermont Illinois where some distant relatives of my husband lived in a Civil War era house...they were 3 elderly sisters, all deceased now, who lived there....yes, its a world different than Chicago/Rockford etc...
Factor in pensions, golden parachutes, "overtime", health-care, vacations, bribes, consulting fees, etc., the fat cat government workers are the ones really squeezing the last drop of blood out of the system.
How is it anyway that "community organizers" end up multimillionaires?
I have been there. You will have noted everyone is conservative, in Vermont.
“Thank you for the kind words about central and southern Illinois. Your understanding is correct.”I agree.
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