The CME Could Move out of IL over Budget Mess

[william the wie]

This is at least the second time the state legislature has shown its ignorance of one of the biggest money generators in the state so the CME set up 24 out of state fallback positions after the last go round. The May 31st deadline has passed so the budget deal will have to be attacked again for a third time.

This is part of a bigger problem of every major industry in the state having fallback positions after the last failed budget deal. The situation is similar in NY and CT with many hedge funds having moved out of CT already.

Taking the gimme position that not just IL but several other states will go belly up when it becomes obvious that no solvent solution is possible what affect on the stock market will be seen when this deal unravels and IL is put into Chapter 3 by its creditors?

 

[DarkFury]

This is at least the second time the state legislature has shown its ignorance of one of the biggest money generators in the state so the CME set up 24 out of state fallback positions after the last go round. The May 31st deadline has passed so the budget deal will have to be attacked again for a third time.

This is part of a bigger problem of every major industry in the state having fallback positions after the last failed budget deal. The situation is similar in NY and CT with many hedge funds having moved out of CT already.

Taking the gimme position that not just IL but several other states will go belly up when it becomes obvious that no solvent solution is possible what affect on the stock market will be seen when this deal unravels and IL is put into Chapter 3 by its creditors?

Remember when I was telling that new member to stay OUT of city and state bonds? We are about to see why. States will seek federal bail out just like the P.R.

They will get it but their bond ratings will drop. The question is will the federal bond rating drop as well for holding more "junk"?

 

[william the wie]

This is at least the second time the state legislature has shown its ignorance of one of the biggest money generators in the state so the CME set up 24 out of state fallback positions after the last go round. The May 31st deadline has passed so the budget deal will have to be attacked again for a third time.

This is part of a bigger problem of every major industry in the state having fallback positions after the last failed budget deal. The situation is similar in NY and CT with many hedge funds having moved out of CT already.

Taking the gimme position that not just IL but several other states will go belly up when it becomes obvious that no solvent solution is possible what affect on the stock market will be seen when this deal unravels and IL is put into Chapter 3 by its creditors?

Remember when I was telling that new member to stay OUT of city and state bonds? We are about to see why. States will seek federal bail out just like the P.R.

They will get it but their bond ratings will drop. The question is will the federal bond rating drop as well for holding more "junk"?

I think a closer look at what happened in the NYC default in the 1970s with the Jets and Giants moving to NJ or the continuing flight from CA as a result of the IOU technical defaults paints a different picture. PR seems to also be painting a different picture as well. The loss of tax base seems likely to be the biggest effect.