[Zakeet]

The problem with socialism is that eventually you run out of other people's money. -- Margaret Thatcher

---

I have highlighted the most important parts of Ms. Mendoza's letter.

To make matters worse, Moody's and S&P have announced that they will downgrade the state's debt to junk status in 10 days. That will trigger a large increase in interest rates (hence interest expense), will require many pension plans and insurance companies to dump the State's obligations, will cause their bond prices to plunge, and will make it virtually impossible for the state, or its cities for that matter, to issue new debt.

[moovova]

[moovova]

You knew that was coming dint’ya?

[Dilbert San Diego]

Geez. Illinois is in big trouble. I wonder how they will solve their problems???

[Extremely Extreme Extremist]

https://westernrifleshooters.wordpress.com/2012/09/03/bracken-when-the-music-stops-how-americas-cities-may-explode-in-violence/

[mrsmith]

It's great to be a politician in Illinois...

[Bernard]

Only a $7 Billion per year shortfall? Simple solution - put ICE on speed-dial, get the ILLEGALS out of Illinois and the spending drops. Medicaid, law enforcement, education, and the list goes on.

Longer term, call another state constitution convention and fix the public employee pension MOAB that also bleeds the state dry. But that would require leadership and courage. Maybe after 8 years as POTUS, Donald Trump could move to Illinois and run for Governor.

[heshtesh]

Are they still allowed to sell lottery tickets in Illinois??

[Enterprise]

"Well I'm going down
Down, down, down, down, down
I'm going down
Down, down, down, down, down
I've got my head out the window
And my big feet on the ground"

[umgud]

At this point, why would anybody but anymore of their debt? Promises of high returns can’t be paid.

Taxpayers and bond holders will be hit hard. Retirees not so much.

[HombreSecreto]

Am I the only FReeper smiling at this news?

BWAHAHAHAHAHAHAHAHAHAHAHA

[dowcaet]

I think we’re about to see rat on rat combat on this one.

[Moonman62]

Maybe they can raise money by selling their illegal aliens to California.

[Presbyterian Reporter]

Illinois needs to privatize all aspects of government and the problem is solved.

[BilLies]

You don’t think Illinois’ financial situation had anything to do with the Obamas, all of them, choosing to remain anywhere but Chicago and Illinois, do you?

[AFreeBird]

Dear Lord. And my state shares a border with them. We’ll be inundated with freeloaders, looking for freebies.

Øbama voters to boot!

[jmaroneps37]

Well HOW could THIS be true? They have a Hispanic female comptroller isn’t THAT enough after all?

[<1/1,000,000th%]

Illinois hasn’t been able to “guarantee timely and predictable payments” for several years.

Small businesses selling products to the state went out of business because they were never paid.

The city of Waukegan won a government budgeting award for assuming the state would be 3 years late with their required payments.

[bIlluminati]

... will make it virtually impossible for the state, or its cities for that matter, to issue new debt.

---

So, is there a downside?

Illinois, if it were legal to do so, would be forced into bankruptcy by its creditors. But a hodgepodge of “legal” decisions mean it cannot even pay off its lottery winners, because the money has already been looted. In fact, over 90% of Illinois revenues are already subject to looting of various kinds, due to the aformentioned “legal” decisions.

[Gritty]

They don't have any more money?

The Liberal solution is easy. Tax the rich some more to get it. If that somehow doesn't cover it, they can always have Illinois write bigger checks to fill in the shortfall!

... easy peasey...

[marktwain]

Illinois figured it was no big deal. With Hillary in the White House, the U.S. Government would just pick up the tab.

It is very important that President Trump not take that bait.

Maybe he could do it as part of very tough love. Require that Illinois congress critters support him on all the legislative initiatives he has in process, like repeal of Obamacare, national reciprocity for the exercise of the Second Amendment, and so forth.

But that is not going to happen, so allow Illinois to reap the fruits of the complete corruption, lawlessness, and irresponsibility in Chicago.

It has to be done, or it will set a precedent that will destroy the United States.

No state should be bailed out by the federal government from the consequences of its overspending.