CDZ IL or CA and Why

Discussion in 'Clean Debate Zone' started by william the wie, Jan 2, 2018.

?

CA or IL

  1. CA

    2 vote(s)
    28.6%
  2. IL

    5 vote(s)
    71.4%
  3. Five states go under

    1 vote(s)
    14.3%
  4. fifteen go under

    0 vote(s)
    0.0%
Multiple votes are allowed.
  1. william the wie
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    william the wie Gold Member

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    IL is tiptoeing to junk status and has been doing so for decades. CA is refusing to spend money for safety, is raising taxes and already has one of the worst out migration rates of any of the 50 States 5-15 states were in fiscal trouble under Obama and the Trump tax bill made the trouble worse starting today. IL or CA are the most likely triggers for 5-15 states being pulled into really deep trouble ranging from bond down grades to insolvency. So, IL or CA and 5 or 15 states getting into deep trouble. What's your call?
     
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  2. Asclepias
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    Where are you getting your stats? Real estate is going up here in Cali.
     
  3. BradVesp
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    BradVesp Senior Member

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    I could re-post the reason it can't be Illinois. Basically, there's no mechanism for the state legislature, judiciary, or governor to declare insolvency nor bankruptcy.
    (honestly, though, there's a lot I don't know)
     
  4. TheOldSchool
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    TheOldSchool Diamond Member

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    If Trump's tax cuts really do cause states to default, then the national debt will take a massive hit. Slashing tax revenue at the same time as bailing out a bunch of states is going to be ugly.
     
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  5. depotoo
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    depotoo Gold Member

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    For bankruptcy, true. Not for insolvency, according to Prof Giertz-
    "States can't go bankrupt, but they can become insolvent since they can't pay their bills. The question then is, what do you do then?" Giertz said.
    Professor J. Fred Giertz, an economist who is director of the University of Illinois' Institute of Government and public Affairs.
    State can't declare bankruptcy
     
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  6. bear513
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    bear513 Platinum Member

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    You never even bother to pay attention to your own state politics?


    https://www.usnews.com/news/best-states/rankings/government/fiscal-stability



    Best States for Fiscal Stability
    Fiscal Stability Rank State
    #1 ND
    #2 WY
    #3 TX
    #4 NC
    #5 SD
    #6 VT
    #7 TN
    #8 IN
    #9 UT
    #10 FL
    #11 VA
    #12 ID
    #13 DE
    #14 GA
    #15 WI
    #16 IA
    #17 MD
    #18 WA
    #19 SC
    #20 NH
    #21 MO
    #22 NY
    #23 NE
    #24 CO
    #25 AK
    #26 OK
    #27 MN
    #28 AR
    #29 MA
    #30 WV
    #31 MI
    #32 AZ
    #33 MT
    #34 AL
    #35 OR
    #36 KS
    #37 RI
    #38 ME
    #39 NM
    #40 PA
    #41 HI
    #42 OH
    #43 CA
    #44 NV
    #45 MS
    #46 LA
    #47 CT
    #48 KY
    #49 NJ
    #50 IL
     
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  7. Ridgerunner
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    Ridgerunner 'Ole Wise One' Gold Supporting Member Supporting Member

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  8. Asclepias
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    Did you actually read it? CA is #23 on the Best states list.

    From your link.

    "California, the most populous state in the nation, is home to Hollywood’s stars, Silicon Valley’s technology, Napa Valley’s wines and ancient Redwood and Sequoia forests. The Golden State also is one of the country’s wealthiest and most socially and politically influential, and has been since it became a state nearly 170 years ago."
     
  9. william the wie
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    william the wie Gold Member

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    Insolvency occurs when the bondholders refuse to roll over the debt. Then they, the non IL resident bond holders sue in federal court under the takings cause and Caterpillar and the commodities markets move elsewhere. That is when the state finds a way to get into Chapter 3 come hell or high water.
     
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  10. bear513
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    bear513 Platinum Member

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    What does that have to do with bad fiscal management by the state? What you never paid attention that California has a huge Unfunded Union pension bubble ready to burst?
     
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