I've looked at various lists about which state is a top five default Risk

[william the wie]

IL is in its third decade of vendor debt default . CA went into technical default under the Governator with no interest paid on IOUs. Those are the top two. NY also makes everybody's list. The NE coast beyond VA with the exception of NH and possibly PA, DE and ME may also make the exceptions list. KY is the only Red state that makes the list. The only other left coast state that is in trouble appears to be WA

In the southeast LA is in trouble as usual but otherwise it's OK in Dixie.

I have reached the conclusion that the daisy chain of defaults will start in the Northeast. But where, when and why escapes me. What's your theory about which will be the first state to go into default and will there be more of bail-out or a criminal investigation?

 

[Toddsterpatriot]

Meh.

 

[kyzr]

No bail outs, period. Some of their crazy pension benefits need to be cut back. Other than those, all they have to cut is education and healthcare. Look at NY chasing HQ2 away??? WTF?? Some states can tax natural resources like Marcellus Shale gas, or oil, or just tax the hell out of gasoline or state income or sales tax.

 

[shockedcanadian]

I will tell you who is at the top of the heap, the state of Ontario...we're finished...

 

[william the wie]

I will tell you who is at the top of the heap, the state of Ontario...we're finished...

You are calling for a global mess?

 

[shockedcanadian]

I will tell you who is at the top of the heap, the state of Ontario...we're finished...

You are calling for a global mess?

No, just a provincial one in Ontario which ill impact Canada greatly.

We grew at .4 of 1% last year. We're in trouble.

 

[Moonglow]

I will tell you who is at the top of the heap, the state of Ontario...we're finished...

You are calling for a global mess?

Misery loves company.

 

[william the wie]

I will tell you who is at the top of the heap, the state of Ontario...we're finished...

You are calling for a global mess?

No, just a provincial one in Ontario which ill impact Canada greatly.

We grew at .4 of 1% last year. We're in trouble.

Indeed you are. The debates and revisions looks like we may be north of 4% by the time of the 2020 election.

 

[Jackson]

So, what reasonable action can be made to start these states on the road to recovery>? Can their state legislature pass laws that would force the state to make fiscal changes?

 

[william the wie]

The huge problem for the US and Canada is that Canada has Newfoundland and Quebec and we don't want either of those nightmares.

 

[Jackson]

My guess is California and Illinois will face the music. They can't tax their citizens any more than what they have. I know someone who lives in Illinois and their house is worth 1/2 of mine, if that. They pay $7,000 in property taxes and I pay $2300 in Tennessee with no state income tax.

 

[william the wie]

So, what reasonable action can be made to start these states on the road to recovery>? Can their state legislature pass laws that would force the state to make fiscal changes?

Short of a massive corruption investigation to finance recovery I don't see anyway the Blue Wall crooks will do anything but simply pocket any recovery money

 

[Toddsterpatriot]

My guess is California and Illinois will face the music. They can't tax their citizens any more than what they have. I know someone who lives in Illinois and their house is worth 1/2 of mine, if that. They pay $7,000 in property taxes and I pay $2300 in Tennessee with no state income tax.

Illinois tried to reform their pension system.
Higher contributions, smaller benefits for new entrants to the system.
The Illinois Supreme Court declared the change unconstitutional.
We're screwed. I'll move out of state before it implodes.

 

[Fueri]

Only state i have a real view on is mine, illinois

State is fucked. unfunded pensions spiraling out of control, net negative population growth as people are fleeing the taxes and following the exodus of jobs out of the state.

The answer? Pritzger, the new gov, whose only visible suggestions for solutions so far seem to be more taxes, which will trigger more exodus. the state is in a death spiral, imo.

 

[Jackson]

My guess is California and Illinois will face the music. They can't tax their citizens any more than what they have. I know someone who lives in Illinois and their house is worth 1/2 of mine, if that. They pay $7,000 in property taxes and I pay $2300 in Tennessee with no state income tax.

Illinois tried to reform their pension system.
Higher contributions, smaller benefits for new entrants to the system.
The Illinois Supreme Court declared the change unconstitutional.
We're screwed. I'll move out of state before it implodes.

Why didn't they take it to the Supreme Court?

 

[Jackson]

I am so against bailouts! Can the state legislature demand that any funds that are not used properly must go to paying down debts> I'm thinking primarily of illegal sanctuary city money.

 

[william the wie]

My guess is California and Illinois will face the music. They can't tax their citizens any more than what they have. I know someone who lives in Illinois and their house is worth 1/2 of mine, if that. They pay $7,000 in property taxes and I pay $2300 in Tennessee with no state income tax.

move way back from your computer before reading the rest of this post.

NY, IL and CA have been run by the same political machines since the 1840s. Short of sending the whole state government in prison for life this problem ain't getting fixed .

 

[Jackson]

My guess is California and Illinois will face the music. They can't tax their citizens any more than what they have. I know someone who lives in Illinois and their house is worth 1/2 of mine, if that. They pay $7,000 in property taxes and I pay $2300 in Tennessee with no state income tax.

move way back from your computer before reading the rest of this post.

NY, IL and CA have been run by the same political machines since the 1840s. Short of sending the whole state government in prison for life this problem ain't getting fixed .

WOW. How did the people allow this to happen?

 

[william the wie]

I am so against bailouts! Can the state legislature demand that any funds that are not used properly must go to paying down debts> I'm thinking primarily of illegal sanctuary city money.

They could but they won't.

 

[Toddsterpatriot]

My guess is California and Illinois will face the music. They can't tax their citizens any more than what they have. I know someone who lives in Illinois and their house is worth 1/2 of mine, if that. They pay $7,000 in property taxes and I pay $2300 in Tennessee with no state income tax.

Illinois tried to reform their pension system.
Higher contributions, smaller benefits for new entrants to the system.
The Illinois Supreme Court declared the change unconstitutional.
We're screwed. I'll move out of state before it implodes.

Why didn't they take it to the Supreme Court?

The Illinois Constitution ……..

SECTION 5. PENSION AND RETIREMENT RIGHTS
Membership in any pension or retirement system of the
State, any unit of local government or school district, or
any agency or instrumentality thereof, shall be an
enforceable contractual relationship, the benefits of which
shall not be diminished or impaired.


Illinois Constitution - Article XIII