Discussion in 'Clean Debate Zone' started by william the wie, Jan 2, 2018.
Agreed. Here is that thread.
In the richest nation in the world
Bonds ain't my strong suit so this won't take long. Rating review depends on the market the bond is being sold on. Private placement is generally unrated and sold to pension funds or locals in the case of munis (often a bad decision on both sides) or insurance company reserves with covenants out the wazoo. But CA backs local munis that are out and out junk and that is the problem. Some jurisdictions, not many, are on a first name basis with the local bankruptcy referee and know each other well. As to IL the state has the easiest portage/canal path between the Atlantic and Gulf coast continental divide and they have had at least six canal buildings but only three canals: the Michigan-Illinois, the vessel and sewerage and the seaway. This led to the commodities exchanges, which are the major revenue source of the state and they are the most easily moved businesses in the state since Baton Rouge/New Orleans is just as good a location.
Cali is definitely headed for disaster.
True. with the expansion of the Panama Canal and the possibility of a Chinese financed competing canal in Nicaragua the west coast is headed for much lower income. Appalachins west and north are coming. luckily state defaults have happened many times before and have had low or no effect on the rest of the country.
We just legalized pot for adult recreational use and expect around a billion in revenue.
According to Moonbeam (quoted earlier in this thread I believe) that would be less than 1% of the shortfall in unfunded liabilities.
California needs a fifteen dollar an hour minimum wage to help make it work.
no one will interfere with Sacramento raising the state minimum wage to even $20/hr
The basic problem with CA, IL, and most of the other states that are in big fiscal trouble is the public pensions, right? So, as I see it we'll be hearing a lot in the next few years (maybe sooner than later) about a bill in the US Congress to backstop those pensions. No mention by the Dems of bailouts or bankruptcies, but plenty of talk about the negatives to the economy if we don't do something. I wouldn't be surprised if it isn't a campaign issue in 2020.
Will it ever happen? Not until we have the Dems back in control of both chambers of Congress and also the WH. Could that happen? Yeah, if the GOP doesn't get it's stuff together and Trump continues to alienate so many people. But we're talking about the single biggest and most important constituency of the Democratic Party, and it's going to be a war out there that the MSM will fight in a big way for the Left. And it' also one big reason why the make-up of the SCOTUS over the next 10 years will be super important, if that court ever becomes left-leaning then this country is fucked.
Right wing tax cuts that benefit the rich do not help pay for pensions for the ninety-nine percent.
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