Monday, January 21, 2013

Forget California: Meet the new poster-child for fiscal irresponsibility

As they say, misery loves company.  Amazing that their tax increase didn't help them!  Amazing!
Investors demand a higher yield penalty on the debt of Illinois and its localities than those in California, according to data compiled by Bloomberg. The premium increased this week to the highest in a month after Illinois failed to overhaul its pensions.

Even higher costs may be ahead. Illinois faces the possibility of another credit downgrade from the three major ratings agencies, which all have assigned it a negative outlook. Moody's rates the state A2, sixth-highest and worse than any other state.

“Illinois is the proverbial frog in boiling water, slowly being boiled alive,” said Laurence Msall, president of the Civic Federation, a Chicago-based nonprofit group that tracks government finance.

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