Yet Another Downgrade
No end in sight:
- The outlook for the state of Illinois' credit rating has turned negative, Standard & Poor's Ratings Services warned today in a report.
The credit rating agency affirmed the state's worst-in-the-nation A- bond rating, but its outlook, which had been raised to "developing" earlier this year after enactment of pension reforms, went back to negative.
That means that the state's credit rating could be downgraded within the next two years unless its finances improve, S and P said. A lower credit rating translates into higher borrowing costs.
Perhaps we should amend that to say "no end in sight that doesn't mention the word 'Detroit'. "
Labels: money questions
posted by SCC at 12:01 AM
25 Comments:
Should we be surprised?
If the corporate tax inversion scams in Illinois of Abbott Labs, Abbvie, Walgreens and the sale of Motorola Mobility to China’s Lenovo was not enough.
As if the revenues of Illinois McDonalds corp. were not flat enough.
A Illinois millionaire that runs a meat supply operation for McDonalds, KFC, Starbucks, Taco Bell and Pizza hut is at the center of a tainted meat product scare all across Asia resulting in polls indicating that up to 70% of the people no longer trust western restaurants.
http://www.chicagotribune.com/business/breaking/la-dd-mcdonalds-yum-brands-chinese-supplier-found-expired-meat-20140721,0,4915013.story
Great news for Illinois business eh?
But wait…there’s more.
Superior Truss and Panel will leave its Markham, Illinois location and invest more than $2.5 million over the next two years in its new spot in Gary, Indiana. Its goal is to open up in the new location in 2016.
http://watchdog.org/160089/another-illinois-business-finds-indiana-attractive-draw/
Nevertheless the icing on the cake is now Ceasar Casinos!
Caesars Wins Illinois Officials’ Support for Refinancing
“…“The financing transaction will, in our view, ultimately pave the road for CEOC’s bankruptcy rather than forestall it,” said Sidney Levinson, a Jones Day attorney in Los Angeles who represents holders of more than $1 billion of the unit’s second-lien notes. “The Illinois Gaming Board has a chance to stop the endless shell game that’s being played by Caesars.” ”
***
The refinancing will increase the interest burden at Caesars Entertainment Operating Co. and result in less investment in its casinos, Levinson said. He also predicted lower tax revenue for the state and possible casino closures.
http://www.businessweek.com/news/2014-07-24/caesars-wins-illinois-officials-support-for-refinancing
So I ask you my friends. With all the little doe-eyed illegal immigrant children being imported to the USA to escape the violence created by DOJ gun running and failed US policy on drug wars. Who is going to pay for the children’s welfare?
In spite of the media boasting about the illegal immigrants being hard workers coming here to help the economy grow, the Illinois workforce numbers declining tell a quite different story then the media would have you believe.
Unaccompanied children that claim on forms to the US border patrol that” i don’t even know my fathers name” when they are asked who their fathers are combined with no jobs is a cultural disaster that will result in more crime and violence.
Meanwhile Rahm Emanuel has the nerve to ask “where are the parents” when some one is shot.
But I digress. Corporations are fleeing leaving the middle class holding the bag. If you can’t see it your either blind or a fool
o/T
So how's that 2.2% cost of living raise looking again??
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Food Inflation Watch: California Farmers' Water Costs Surge 700% After Government Cuts Supply
When we reported on the government's decisiosn to withhold irrigation water to California for the first time in 54 years, we warned there would be consequences: farmers are hit hardest as "they're all on pins and needles trying to figure out how they're going to get through this." Fields will go unplanted (supply lower mean food prices higher), or farmers will pay top dollar for water that's on the market (and those costs can only be passed on via higher food prices). Sure enough, as Bloomberg reports, farmers in California’s Central Valley, the world’s most productive agricultural region, are paying as much as 10 times more for water than they did before the state’s record drought cut supply.
* * *
The drought gripping the state that supplies half the fruits, vegetables and nuts consumed in the U.S. has led federal and state providers to curtail the water they distribute to farmers. That’s prompted districts representing growers to buy and sell for escalated prices from other parts of the state.
How much money is enough for these jags?
The Chicago Way!
WRT: Illinois-based OSI Group,
Exclusive: China meat supplier faced claims last year over unethical work practices
Perhaps the state could cut it's sending on non-essentials; however, that is not something a democrat politician is likely to do. More likely, the pols will raise taxes in order to increase revenue. That seems to be the progressive way. If past voting trends continue, I predict dire things are going to happen.
The State, and it's citizens, are so screwed.
No wonder potatohead announced yesterday that he borrowed another BILLION dollars for road improvement projects. He needed to get it in before the downgrade came. Isn't there something that potatohead can find in the govenor's mansion garage that the state can pawn, a car title he can take a loan against or a payday loan he can get against his salary? I mean really, isn't that what we're heading towards.
How hard is it to cut freebies for illegals and rif raff??????????
This bleeding heart liberal mentality is the reason why Illinois is in a big fiscal hole. States like Wisconsin and Illinois have balanced budgets, lower taxes and are stealing away more and more businesses from Illinois.
Rauner will have his work cut out for him. Quinn and the status quo will end up crashing the state.
Putting Chicago through a municipal bankruptcy would be a good start. In about 5 years, it will be the only option.
And this is AFTER a record tax haul.
I think you meant Wisconsin and Indiana. At the end of FY-2013, Indiana had a $1.94 Billion surplus. Still ILLinoised? Come on over to the great State of Indiana....and you can bring your guns!
I could lend them about ten bucks.
Keep voting for Democrat Communists like Durbin, Emmanuel, Quinn, Madigan and Cullerton. We are just one state away from Rock Bottom.
Screw Standard & Poor's ratings. All of those jagoffs on Wall street manipulate the market to suit themselves. You'll have a better chance at winning a game of 3 card Monte on the Red Line.
Noting S & P states " pension reforms" is the culprit and the reason for the future downgrades. However decades of under funding and frivolous spending isn't. The more Illinois cuts from pension funding the more they'll spent on government handouts. Fair?
Im really not sure about Rauner being a savior of pensions though I'm certain Quinn might be, but he's still has that spending disorder to this very day.
One thing for sure we need Rahm out of City Hall.
Yep. And Gov Potatohead just set out to borrow another $1.1 BILLION for construction projects.
Construction projects = big campaign contributions from contractors.
Putting cash towards the pension funding deficit? Aint no percentage in that.
Deficits? Accountability? Those are concepts only for Republicans. Liberals, on the other hand, only care about advancement of their social agenda.
Throw the motherfucker out of office.
Not a cop.
Quinn needs to be gone he's an idiot a classic democrat. OT: Reid &co. have attached a bill to fund the illegals with a bill to support funding Israel's iron dome so if the repubs vote it down it would look like we are not funding our greatest ally in their fight against people who hate us both and that Obama just loves hamas.
When the FAA banned flights to Israel the other day claiming it was unsafe due to the war NYC's Michael Bloomberg thumb his nose at the warning and flew there to show that Israel was safe.
My point?
Maybe Rahm will fly to Moscow or Beijing and order a quarter pounder for his masters at MCdonalds to show that their food is safe
Ooops. This just in. Russia and Japan join in.
TAKE THAT ILLINOIS....
Russia takes aim at McDonald's burgers as U.S. ties worsen
"..."We have identified violations which put the product quality and safety of the entire McDonald's chain in doubt," Anna Popova, the watchdog's head and Russia's chief sanitary inspector, was quoted by Interfax news agency as saying.
The watchdog agency Rospotrebnadzor has previously been accused of acting in the political interests of the Kremlin, banning Georgian wine as Tbilisi strengthened ties with Washington and spirits from Moldova after the former Soviet republic boosted its drive to partner with the European Union.
A Moscow court told Reuters a regional branch of Rospotrebnadzor had asked it to declare production and sales of some McDonald's products illegal after the watchdog agency carried out inspections of McDonald's restaurants last June.
The regulator says the company is deceiving consumers about the energy value of its Cheeseburger Royales, Filet-o-Fish, Cheeseburgers and Chicken Burgers and about nutritional value of its milkshakes and ice creams.
Its also said in a statement that Caesar wrap sandwiches and a vegetable salad were contaminated with coliform bacteria, which indicates the likelihood of food poisoning...."
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Japan's biggest restaurant chain by revenue said earlier this week that its outlets here cut ties with Shanghai Husi Food Co., an arm of OSI Group Inc. of Aurora, Ill.
Follow the money. Their sales drop and Illinois revenues drop.
This downward spiral will continue until viable republican candidates are voted into office. We are at the tipping point but the low information voters don't understand.
How hard is it to cut freebies for illegals and rif raff??????????
This bleeding heart liberal mentality is the reason why Illinois is in a big fiscal hole. States like Wisconsin and Illinois have balanced budgets, lower taxes and are stealing away more and more businesses from Illinois.
Rauner will have his work cut out for him. Quinn and the status quo will end up crashing the state.
7/25/2014 06:11:00 AM
Illinois had one of the highest cuts to food stamps in the country about a year ago. It'll be kind of hard to cut government assistance when the state isn't even creating jobs. Not to mention at least 42% of the country is now on some sort of government assistance.
Anonymous said...
Putting Chicago through a municipal bankruptcy would be a good start. In about 5 years, it will be the only option.
7/25/2014 06:24:00 AM
And what will happen to our pensions? Not a good idea. The federal bankruptcy courts do not have to abide by the state constitution pension protection provisions. Look at Detroit and other cities.
We cannot afford to have democrats in any position of power in any part of government in this country the nuts are running the asylum.
Illinois is so deeply circling the drain that eventually it will swirl in the opposite direction as it goes down the pipe.
We are trying to be like be Detroit. With these idiots in office we can make it happen.
Think it's bad now wait till Chicago becomes home to 2 million welfare immigrants.
Like in Detroit the bankruptcy court cut everyone's pensions except police and fire a win win for first responders so rahm the precedent is set bankrupt us you will pay!
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