The Illinois Treasurer said Monday he is willing to dial up the bond houses and finance companies to alert them that lending the state more money, as Gov. Pat Quinn has proposed, would be a "major risk," according to St Louis Today.
"If I need to send letters to the rating companies to tell them the treasurer of Illinois is opposed to more borrowing, I'm going to do that," said Republican Treasurer Dan Rutherford.
The backlog of unpaid bills will reach $8 billion by July, Comptroller Judy Baar Topinka recently estimated.
Rutherford says the debt from past borrowing has soared to $45 billion.
The only state with a worse credit rating is California.
I keep waiting for one of these states to admit default, but it never seems to come. Maybe that would open the floodgates for more of them to default. It's like the end of ponzi scheme where they're just lying to buy a little more time.
ReplyDeleteDon't worry IL, your debt will be made whole. Along with the banks, credit card companies, foreign governments etc. The more money thats printed the better we all are really. Everyone will be rich I tells you!
ReplyDeleteSo these bond houses and finance companies need a call from Treasurer Dan Rutherford to tell them there "major risk" with lending to Illinois after he publicly states it is so? The situation is dopey on many levels.
ReplyDeleteIt (default) doesn't come because the debt train keeps running. As long as states are able to continue to borrow, then their budget is balanced as per current accountancy rules. The Federal government's favoring of indebted states also throws a wrench into the state debt dynamic, while also exacerbating the overall economic outlook.
ReplyDeleteWe won't know when it happens, or to what degree, but this party will eventually come to an end. Turn out the lights....
Lord, If I can find just one righteous man will you spare the world?
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