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| Economy |
| Could Illinois be the first state to file for bankruptcy? |
| 2017-06-17 |
| [CBS] Illinois residents may feel some solidarity with the likes of Puerto Rico and Detroit. 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. "Legislative gridlock has sidetracked efforts not only to address pension needs but also to achieve fiscal balance, allowing a backlog of bills to approach $15 billion, or about 40 percent of the state's operating budget," the agency noted. |
| Posted by:Besoeker |
| #13 And: Powerball, Mega Millions to drop Illinois due to state’s budget crisis At least my "loosie" wait times will be reduced. |
| Posted by: Anomalous Sources 2017-06-17 15:55 |
| #12 #10 So they could give Cook County (including Chicago) to Detroit? Or Puerto Rico. Is the name Commonwealth of Failed States already taken? |
| Posted by: SteveS 2017-06-17 13:24 |
| #11 Supposedly on Friday a "Dear Contractor" letter and email went out to all state contractors in Illinois notifying them to cease all state highway work as of July 1 unless safety requirements yada yada...(a long list of who to contact for exceptions followed. Would you trust them?) Multi State Lottery (Powerball & MegaMillion) announced they were terminating business in Illinois as on July 1 as well. Evidently the rats have gained control of the lifeboats. |
| Posted by: ed in texas 2017-06-17 09:51 |
| #10 So they could give Cook County (including Chicago) to Detroit? Yummy! |
| Posted by: Bobby 2017-06-17 09:50 |
| #9 Might note, that in territorial status, the Feds can carve up multiple states from one and/or transfer parts to neighboring states. Wonder how the non-Chicago part of the state would feel about that? |
| Posted by: Procopius2k 2017-06-17 08:29 |
| #8 Beso, you forgot about the obligatory opening of Swiss bank accounts for the leaders and preparation of extradition proof retreats. |
| Posted by: AlanC 2017-06-17 07:45 |
| #7 In Africa and Latin America, countries that suffer financial ruin have invariably resorted to nationalization of resources, industry, and property. Blaming neighboring states is also a mandatory component. Asset seizure is done subtly at first, through taxation under the guise of fairness and equity redistribution. Inflation and monetary devaluation quickly follow. Out of a fear of coups d'état, military and political purges oftentimes also follow. Keep an eye on events as they unfold. |
| Posted by: Besoeker 2017-06-17 07:09 |
| #6 ...Something I've seen pop up over the last few days is the idea that if a state manages to go bankrupt, then they are no longer a state and revert to territorial status. I like the idea myself, and there are apparently a fair number of reasons it's legally possible, but Lord alone knows the upheaval that would come from one of the bluest of blue states suddenly coming under Federal control. Mike |
| Posted by: Mike Kozlowski 2017-06-17 06:57 |
| #5 Yea, but Illinois had a head start. |
| Posted by: g(r)omgoru 2017-06-17 02:53 |
| #4 I think California is coming up fast in the competition for 1st bankrupt state. With their single-payor healthcare for everyone - especially illegals, they just hit the afterburners. |
| Posted by: CrazyFool 2017-06-17 00:52 |
| #3 Golly, I wonder what would happen were "Illinois" a company facing near-certain collapse (rather than a city)? |
| Posted by: Crusader 2017-06-17 00:51 |
| #2 Illinois is already defaulting on its financial obligations and more of the same is on the way, due to mathematics. Bankruptcy would be like rearranging deck chairs on the Titanic. |
| Posted by: Anguper Hupomosing9418 2017-06-17 00:21 |
| #1 They cannot even keep their roadside rest stops open. There are MANY on this map which were closed years ago, but not listed. Notice the locations of the ones listed (Red-X = closed). All in downstate locations, all Republican enclaves. Sorry arsed State of Illinois DOT link. |
| Posted by: Besoeker 2017-06-17 00:05 |