Illinois Debt Downgraded Again, Worst in Nation
by Publius
SPRINGFIELD — Illinois, unable to solve its long-running financial problems, was given the lowest credit rating of any state in the country by Moody’s Investors Service on Friday, a move that will increase costs to taxpayers.
A second agency, Standard & Poor’s, left its Illinois rating unchanged but warned of a negative outlook that could lead to a downgrade in the future. A day earlier, Fitch Ratings also left the rating unchanged and declared a stable outlook.
Lower credit ratings generally mean the state winds up paying more interest when it borrows money by selling bonds.
Both Moody’s and S&P said they are troubled by Illinois’ failure to balance its budget and strengthen government pension systems, although a tax increase and other measures have helped.
Moody’s cited “weak management practices” and a recent legislative session that “took no steps to implement lasting solutions.”
Moody’s now rates Illinois “A2,” below any other state. Only one state, California, qualifies for the next-highest rating. All the rest are ranked higher.
Standard & Poor’s flip-flops the states in its ratings. California is worst, with Illinois a notch above.
Read more at The Chicago Sun-Times.
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78 Comments
They bounced lottery checks. That's a warning sign for anybody!
Walter Hanson
Minneapolis, MN
I read this thread currently, then remember the thread from earlier today http://biggovernment.com/publius/2012/01/07/illin... and the future sure doesn't look bright for Illinois. They need to vote themselves into existence a mulitbazzilion dollar Public Works project, to stimulate their economy. Maybe a High Speed Rail deal, so that the locals can get out of town quickly, and bypass the Federal Penn in Joliet.
I'm thinking that when Obama leaves the soiled Oval Office in January, that he will not want to go back home. there is nothing left there to steal.
Welcome to our future.
Another example of the polarizing forced collectivism of the two government party system
Under "moderate" Republican Jim Edgar Illinois had some of the highest bond/credit ratings in the nation.
Followed by…
George H. Ryan (R), Penitentiary
Rod R. Blagojevich (D), Penitentiary
It wasn't always so bad here people, but what we see today is gangster government run amok.
Kalifornia is hippie-dippy dreamland run amok.
The two faces of the Left, and they are both ugly, mean and destructive…
Funny.
There You go again.
Kicking my cartoon mind into gear.
Do you know what the spawn was when Kal-i-forn-iyeah! and Illinois copulated?
Colorado.
The land of president food stamps Obama the naked dictator. Screw you Illinois and Obama!!
Suffocating, ruinous debt. It's the
ChicagoObama way.Anybody that smart and accomplished ought to be allowed to run the country like an emperor, right?!
That story was a red herring. It had nothing to do with the account balance. Some clerk forgot to release the security codes on the checks.
Alien:
It's not a red herring. It happened. The point is if they're not properly handling money to pay an obligation that is a risk that people might not get paid their debt in the future. Thus a reason to downgrade by itself.
Walter Hanson
Minneapolis, MN
Maybe Abominus Maximus should just declare his homey's debt as "hereby dissolved". A little warmup for bigger vote-buying giveaway decrees to come from on high.
What's the bad news on Colorado? I've thought some of moving there. I'm already on the left coast so can't imagine it being any worse, liberally speaking.
Really?
You do not know?
Every old hippie and granola eating freak and geek that could not afford the California lifestyle, moved to Colorado.
Colorado is California, for the less affluent……….(or should that be spelled effluent?)
Shocker, a bunch of commie thugs bankrupting the tax payers of a State…Oh wait, that's their goal right?
Stateville is an IDOC enterprise. Maybe the high speed rail could go to Marion, IL. That's where the FedPen is, though most people think it is in Joliet because "The Blues Brothers" was filmed (in part) at the Joliet Correctional Center (closed 2002). Without that movie I doubt many outside of the immediate region would have even ever heard of Joliet.
I hope Obama goes to Hawaii, though I suspect he will end up in either NY or MD to stay close to the
corruptionaction.I stand corrected.
I was not thinking of the Blues Brothers.
I was thinking of John Gotti.
The first thing that came to mind was Joliet.
You are right, I meant Marion.
Are you going to watch the GOP Fraternity Soiree tonight?
So far, the story is they forgot to key the security codes.
We'll see.
Nope, I did not know that. Just started looking around and CO looked like a possibility for some other factors. CA is way off the list. WA and OR were californicated years ago too.
I can't believe there is a state worse off than California. Defies odds, Illinois should get some credit for that
"It's not a red herring. It happened. The point is if they're not properly handling money to pay an obligation that is a risk that people might not get paid their debt in the future."
You are absolutely correct.
Sure they forgot the security codes, and last week I had pigs flying out of my butt there were thousands of them.
I guess they will have to pay a 2x or 3x penalty for bouncing the check.
Yep. Boulder = Berkely, CA = Madison, WI = Austin, TX
Hen, heh,,, Is that your property taxes goin' down the drain in that pic at the top of this page?;-D
.
WTF? You telling me that there is a state worse off than California??? Oh God… We are doomed!
Michelle Malkin via PowerLine blog:
"Here’s the operating motto of the Obama White House: “So let it be written, so let it be done!”
Like Yul Brynner’s Pharaoh Ramses character in Cecil B. DeMille’s “The Ten Commandments,” the demander in chief stands with arms akimbo issuing daily edicts to his constitution-subverting minions with an imperious wave of his hand. His entourage of insatiable usurpers never rests." ….
Score.
It is hard to imagine, although it fits perfectly considering it's where Obama was a senator.
Homemade tacos and NFL playoffs strongly suggest "no", though I may change my mind…
Glad to be of assistance on the prison bit. Jonathan Pollard, Pete Rose and Manuel Noriega are also former residents of note…
Hen heh? You sippin' on wine already? Or is that some new bird call I ain't familiar with?
To answer your question: No, my property taxes get flushed down a similar hole at the county level…
SSSS!
I will pray tonight that Barrack Obama gets sent their as soon as expeditiously possible.
Would not surprise me if it is a cover story.
Not. At. All.
They should.
Just like anyone else.
Oh…..wait…..
I don't see Governor Gardasil being recalled.
Zero points for the Rhinestone Cowgirls. Three points for THE HOLLLLLLLLLLLLLLLEEEEEEEEEEEEEEEEEEEEEEEEEEEEEYYY ROLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLERS!
No high speed rail to Marion! I moved down here to specifically avoid Cook County escapees.
Amwreck goes up there – half full – all the time, anyway.
We internees of the Union of Illinois Socialists Republic feel it everyday.
We're simply buffered from it, somewhat, being 342 miles south.
Huh?
Every year.
I just watched that on DVD a few nights ago.
Exactly.
"So, let it be said. So, let it be written."
"Both Moody’s and S&P said they are troubled by Illinois’ failure to balance its budget and strengthen government pension systems, although a tax increase and other measures have helped.
Moody’s cited “weak management practices” and a recent legislative session that “took no steps to implement lasting solutions.”
Are they just talking about Illinois or are they warning about the country's as HOLE?? I mean he did come from the land of corruption–ER Lincoln– no I mean Illinois..
So stop loaning money to these mob and union goons.
If you buy their bonds, you deserve to lose your investment.
You guys are forgetting that lottery players are Obama voters.
CA and IL have the same problem as the PIIGS (Portugal, Ireland, Italy, Greece, Spain): NONE of them can inflate their way out of their debt problem. So, I guess we get to watch them 'sweat'. Something is gonna have to give eventually. RUN (move) while you can!
Maybe Scott Walkernator can find time in his busy Winning schedule to invade Illinois and blast all the chumps we put into office here.
Yul Brynner as the imperious Pharaoh garbed with a dunce hat is the best distillation of all that is Obama I've seen.
Where is our Moses?
Respectfully, I have been doing that since 2008.
Yeah, too bad, but if the US goes down the crapper, where else can one go to run and hide?
The way things are headed, there might be large tracts of the US that will nearly turn into economic wasteland. States like CA, IL, MI are ahead of the pack in that direction. By some coincidence, states' economic prospects are in inverse proportion to how far left they've been and for how long. What a surprise.
Look out citizens of Freedonia your government is looking to you, again.
They probably have an ex-governors' wing of the prison. Blago is the newest inhabitant.
The good people of Illinois, and there are a lot of them , are in for a rough time now that the destroyers have brought the great state to its knees. Time to mobilize and clean out Cook County….start the long march to recovery and never forget what the crooked Progs did to you.
Sorry. You can't have him!!!
Illinois is a Democrat dominated state so much that it must be almost genetic. About four cesspool counties pull down the rest of the state, which is unfortunate. The head Democrat in Springfield, Mike Madigan, deserves a lot of the credit for the mess Illinois is in, but he keeps a low profile and is very slick. He has aspirations for his daughter, Lisa, currently Illinois's Attorney General. of being governor one day. So things don't look any better for the future. Of course public service unions have had a big hand in Illinois' downward slide as well. Get out if you can. Not much of a place to raise a family. Taxes are outrageous.
And Wisconsin's governor is the one being impeached. Go figure. Scott Walker balanced the budget, held the line on taxes, saved public employees jobs and strengthened the state's economy. For this he gets called every vile name in the book and his head is demanded on a platter.
Pat Quinn in Illinois raised taxes, bolstered public union pensions, increased public pork programs and this is the result. But because he's such a good and faithful liberal foot soldier, he's considered a hero.
The Recall Walker people should take a close look at this article, but I have a feeling they'd miss the point completely.
Good thing Barry "organized" Illinois before he set out on organizing America. Take a good look…Illinois is what Federal government will look like in a few years. Sorry but don't say I didn't warn you.
For both Illinois and California a bankruptcy like transaction needs to happen –
These states can not paid there bills and have no plan that is even close to fixing the problem –
Compounding the problem is the entitlement issues are going to get worse and tax revenue is going to fall as people and business flee the state.
I an sure there more states is bad shape but these states lead the pack – some pack.
Think this through, Cannon649. How will bankruptcy help Illinois, exactly? And after bankruptcy, who is it that will buy Illinois bonds? Without the ability to raise capital by selling bonds, what happens then?
The only answer is to continue to levy higher and higher taxes, driving more and more businesses out of state, costing more and more jobs, until taxes have to be raised again from fewer and fewer tax payers.
It's a pretty grim picture. In the meantime, our politicians flit from crisis to crisis as if it's business as usual. The fact is that Illinois is largely controlled by the incessant demands for cash and power by Cook County and the city of Chicago, and Chicago has been run by machine politicians my entire life. They have spent us into insolvency, our government is riddled with corruption, and it's just not going to change.
The real question is what's going to put a stop to it. The answer is nothing.
Imagine. Even worse than Michigan.
The Illinois economy "should" be an albatross around Obama's neck– but isn't, specifically because the "lamestream" media runs cover for him. If it were a GOP president, the Illinois economy would be front and center headline news, 24/7– ESPECIALLY in an election season.
There is no antibiotics for a virus.
I cannot TELL you how glad I am to be out of Illinois. The only way I'll go back there is if it's unavoidable in order to pass through the state on the way to somewhere else.
I escaped from Carterville six months ago… If I remember correctly, wasn't there a huge public works project beginning… widening Rt. 13 among other things, that was challenged in court?
Ask Debbie Washerwoman-Schults to place the blame for Illinois' troubles… she will tell you that behind every Demonrat crook there is a Republican pulling the strings! Needless to say, Demonrats are in dire need of institutionalization, and not in the good way either. God almighty, how in the heck have we let this country stray so far from honor and our patriotic constitutional roots?
The Dems do such a magnificent job of governing.Take a look at what America will look like when Obama finishes with his "Hope and Chage" agenda.
Im not suprised at all the biggest crooks come from Illinois , Especially that Chi Town gang of Daley, Emanuel , Rezko and Owebama . They have stolen almost everything for themselves and their union cronies . By the time Emanuel is finished and Owebama is out of office the only thing left will be the curtains .
And Obama voters are losing gamblers.
Yeh and……….
The dem machine is NEVER gonna release their death grip on taxpayers. Do taxpayers there really have to be told to get out of a burning building.
According to obama there are at least 56 other states.MOVE TO ONE!
Things are never going to change in Illinois unless new leadership is brought in. The typical Chicago liberal Democrats have run the state in the ground with over generous pensions, too many boards, and hiring practices that are questionable. Raising the taxes only to bolster pensions and more spending instead of paying the past due bills is not right. Giving companies tax breaks and bribes with the increases is not working either. Now there are whispers that the "temporary" taxes may be permanent, which is totally unfair to the taxpayers who will revolt.
Everything Barry Obama learned about Economics he learned in Chicago…so…YES you are right! WE are facing a bleak future of BIG GOV, Gov. Overreach, UNsustainable GOV. SPENDING…and sadly Crony Capitalism where BIG GOV PICKS its Winners and Losers. Half The country PAYS NOTHING to the IRS and the other HALF is OVERTAXED. And YES…Obamunism that is turning our once Great USA into a nation of
DEAD BEATS!
The virus is called Progressivism, and it must be eradicated.
Well HE certainly THINKS so! and his Obamanites are still drunk from all the Kool Ade, planning how they can VOTE EARLY and OFTEN!
I grew up in southern Illinois, still have lots of relatives there, those that could not flee like rats from a sinking ship. Even when I was a little kid, I can remember my parents talking about the crooks in Cook County controlling the state. Many years later, the parasites have just about killed the host…Progressivism in action. Once Illinois is bankrupt, the parasite will begin to look for another unwilling host.
Gov. Moonbeam Brown and all his LEFTie co-horts such as Nutsie Pelosi, Babs Boxer, Diane Feindstein are all on the same page as far as TAX and SPEND, EPA NUTS, Power Plants, and Wealth REdistribution. It's a wonder Kalifornica has lasted this long!
The SAME PROGS from Chicago are now in DC doing their dirty deeds to America.
They won in 2008, big.
It could help if they did the right thing, but they won't. There is no provision in the US Constitution for a State bankruptcy, but a procedure to "reorganize" a state's debt would allow Illinois to get out from under those ridiculous union contracts, pension plans, and perhaps bond obligations as well. Of course the almost complete control by the dems insures they won't do that, with the possible exception of a haircut for the bondholders (they're rich, after all, and they don't deserve to see the money they invested).
I'll echo the call. If your work, if you save, get out while you can.
Just curious — where in southern Illinois? I lived near Carbondale, in Carterville, for 8 of the longest months of my life
Our work is just beginning. It is going to be quite some time for us to recover from this group of clowns.
Belleville. I still go back to that area to see my trapped relatives but I have not lived there for quite some time. Were you possibly in the AF stationed at Scott AFB?
No, I worked for a group of AM/FM radio stations.
Dont worry, I am sure that Moonbeam Brown has a plan in the works to take the title of Worst state in the union back. Maybe a chunk of high speed rail from LA to Coachella costing $10 billion.
That's Crook County for you. Hate to think what Adalai Stevensons RPMs are now.
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