The Blue Wall Financial Crisis is Heating up

[william the wie]

IL had a deadline of May 1 to straighten out its finances. The deadline was not met so various state schools and agencies have been downgraded.

CalPers is keeping CA out of insolvency for now but less stressed retirement accounts are piling into the private equity finds where CalPers hit gold so this state is likely to blow up as well.

MI, NJ and PA are also hurting. Since these are all currently safe states for the Ds it makes a big difference whether they blow up before or after the election.

My question is how much affect on the election can be expected if the blow up is before the election and particularly down ballot.

 

[jwoodie]

IL had a deadline of May 1 to straighten out its finances. The deadline was not met so various state schools and agencies have been downgraded.

CalPers is keeping CA out of insolvency for now but less stressed retirement accounts are piling into the private equity finds where CalPers hit gold so this state is likely to blow up as well.

MI, NJ and PA are also hurting. Since these are all curreitntly safe states for the Ds it makes a big difference whether they blow up before or after the election.

My question is how much affect on the election can be expected if the blow up is before the election and particularly down ballot.

These Blue States will remain blue and vote for federal government bailouts. Hopefully, the other states will oppose this.

P.S. CalPers has a 2% increase cap on pensions (not health care), so a greater rate of inflation could ease its structural deficits.

 

[william the wie]

Since the Far East and EU are exporting deflation not much chance of that..

 

[martybegan]

IL had a deadline of May 1 to straighten out its finances. The deadline was not met so various state schools and agencies have been downgraded.

CalPers is keeping CA out of insolvency for now but less stressed retirement accounts are piling into the private equity finds where CalPers hit gold so this state is likely to blow up as well.

MI, NJ and PA are also hurting. Since these are all currently safe states for the Ds it makes a big difference whether they blow up before or after the election.

My question is how much affect on the election can be expected if the blow up is before the election and particularly down ballot.

Sooner or later, you run out of other people's money, or more correctly, the people you expect to pay the bills are going to be born in a century instead of a few decades.

 

[william the wie]

IL had a deadline of May 1 to straighten out its finances. The deadline was not met so various state schools and agencies have been downgraded.

CalPers is keeping CA out of insolvency for now but less stressed retirement accounts are piling into the private equity finds where CalPers hit gold so this state is likely to blow up as well.

MI, NJ and PA are also hurting. Since these are all currently safe states for the Ds it makes a big difference whether they blow up before or after the election.

My question is how much affect on the election can be expected if the blow up is before the election and particularly down ballot.

Sooner or later, you run out of other people's money, or more correctly, the people you expect to pay the bills are going to be born in a century instead of a few decades.

Reality check:

Since three of these five states elected R governors but not R legislatures is this going to be a wash if the defaults if it comes prior to the election but the tax flight starts getting noticeable after the election or not?