• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

S&P, Moody's Downgrade Illinois to Near Junk, Lowest Ever for a U.S. State

Renae

Renae

Banned
Suspended
DP Veteran
Joined
Aug 26, 2007
Messages
50,241
Reaction score
19,243
Location
San Antonio Texas
Gender
Female
Political Leaning
Conservative
Illinois had its bond rating downgraded to one step above junk by Moody’s Investors Service and S&P Global Ratings, the lowest ranking on record for a U.S. state, as the long-running political stalemate over the budget shows no signs of ending.
S&P warned that Illinois will likely lose its investment-grade status, an unprecedented step for a state, around July 1 if leaders haven’t agreed on a budget that chips away at the government’s chronic deficits. Moody’s followed S&P’s downgrade Thursday, citing Illinois’s underfunded pensions and the record backlog of bills that are equivalent to about 40 percent of its operating budget.
Click to expand...
https://www.bloomberg.com/news/arti...-to-one-step-above-junk-by-s-p-over-stalemate

And that's about it for Illinois, the breakdown of that state is going to accelerate at a furious pace now.
 
Moderate Right said:
I wonder what the state would be like without Chicago?
Click to expand...

I doubt it would be much better.
the entire state has been mismanaged from the start.

without a way to handle it's legacy and ongoing costs there is no way to save it.
the state will have to declare bankruptcy.

this is what happens when you have mismanaged government and corruption that has occurred.
 
ludin said:
I doubt it would be much better.
the entire state has been mismanaged from the start.

without a way to handle it's legacy and ongoing costs there is no way to save it.
the state will have to declare bankruptcy.

this is what happens when you have mismanaged government and corruption that has occurred.
Click to expand...

I disagree. I think a lot of the mismanagement and incompetence stems from the concentration of power in Chicago and it's suburbs. That power dwarfs the rest of the state.
 
This clearly describes the Illinois Republican Governor; during his election campaign, he said "creating a crisis, creates leverage". Well guess what, he got what he wanted. But don't worry, he'll be just fine, screw everyone else.

That's how an individual who cares more about his own power than serving the people of Illinois. This is how people like Donald Trump thinks.
 
Cigar said:
This clearly describes the Illinois Republican Governor; during his election campaign, he said "creating a crisis, creates leverage". Well guess what, he got what he wanted. But don't worry, he'll be just fine, screw everyone else.
Click to expand...

I believe the crisis was created well before he came to office.

That's how an individual who cares more about his own power than serving the people of Illinois. This is how people like Donald Trump thinks.
Click to expand...

The major concerns for virtually all politicians, regardless of party or location, are power, control and re-election.
 
Underfunded pensions will be the death of us all.
 
ludin said:
I doubt it would be much better.
the entire state has been mismanaged from the start.

without a way to handle it's legacy and ongoing costs there is no way to save it.
the state will have to declare bankruptcy.

this is what happens when you have mismanaged government and corruption that has occurred.
Click to expand...

That's not correct. Downstate spending is rather frugal. The corruption occurs from the powerbase in Chicago and the collusion between Democrats and Public sector unions to gobble up every tax dollar they could lock down.
 
OpportunityCost said:
That's not correct. Downstate spending is rather frugal. The corruption occurs from the powerbase in Chicago and the collusion between Democrats and Public sector unions to gobble up every tax dollar they could lock down.
Click to expand...

I for one am looking forward to Janus, now that Gorsuch is on the bench. And if Kennedy retires, hopefully that all but secures it.
 
ludin said:
I doubt it would be much better.
the entire state has been mismanaged from the start.

without a way to handle it's legacy and ongoing costs there is no way to save it.
the state will have to declare bankruptcy.

this is what happens when you have mismanaged government and corruption that has occurred.
Click to expand...

How does corruption figure into this dynamic?
I know nothing about Illinois but I do know that many states are in a pickle due to overly generous pension obligations. There should be some mechanism to tie salaries and benefits for public employees to wages and benefits of private sector employees. It is not possible to have sensible benefit negotiations where there are not 2 sides at the bargaining table and I assume that tax payers were not invited to the decision making. Who granted public employees generous benefits?
 
OpportunityCost said:
That's not correct. Downstate spending is rather frugal. The corruption occurs from the powerbase in Chicago and the collusion between Democrats and Public sector unions to gobble up every tax dollar they could lock down.
Click to expand...

Then I would suggest that the process is the problem. Fight for legislation that ties public sector benefits to that of people in the private sector.
 
Cigar said:
This clearly describes the Illinois Republican Governor; during his election campaign, he said "creating a crisis, creates leverage". Well guess what, he got what he wanted. But don't worry, he'll be just fine, screw everyone else.

That's how an individual who cares more about his own power than serving the people of Illinois. This is how people like Donald Trump thinks.
Click to expand...

Illinois has been a blue state for many years, and is one of the Big 3 Democratic strongholds, along with California and New York. The problems in your state didn't begin with your governor who's only been in office for 2 years.
 
Cassandra said:
Then I would suggest that the process is the problem. Fight for legislation that ties public sector benefits to that of people in the private sector.
Click to expand...

As a downstate voter, I have to ask the million dollar question, how?
 
Cassandra said:
How does corruption figure into this dynamic?
I know nothing about Illinois but I do know that many states are in a pickle due to overly generous pension obligations. There should be some mechanism to tie salaries and benefits for public employees to wages and benefits of private sector employees. It is not possible to have sensible benefit negotiations where there are not 2 sides at the bargaining table and I assume that tax payers were not invited to the decision making. Who granted public employees generous benefits?
Click to expand...

Its part of the state constitution. Current pension agreements cant be altered short of a state constitutional amendment and Madigan has blocked, I believe, 3 of them reaching the ballot.
 
OpportunityCost said:
Its part of the state constitution. Current pension agreements cant be altered short of a state constitutional amendment and Madigan has blocked, I believe, 3 of them reaching the ballot.
Click to expand...

Constitutional amendment? What a quaint 20th century notion. Just find a judge in the Central or Southern District, or the US Bankruptcy court to overturn that provision. Easy.
 
AliHajiSheik said:
Constitutional amendment? What a quaint 20th century notion. Just find a judge in the Central or Southern District, or the US Bankruptcy court to overturn that provision. Easy.
Click to expand...

It may come to that, who knows.
 
illinois-debt-cartoon_orig.jpg
 
And who paid the ratings agencies to do the downgrade? Follow the money... Ratings agencies are utterly corrupt and their ratings are devoid of reality.
 
PeteEU said:
And who paid the ratings agencies to do the downgrade? Follow the money... Ratings agencies are utterly corrupt and their ratings are devoid of reality.
Click to expand...

:lamo Unbelievable. It cant possibly be true that left wing governments ever do anything wrong. A liberal state cant possibly be bankrupt. No. It must be those dastardly ratings agencies out to get them.
 
OpportunityCost said:
That's not correct. Downstate spending is rather frugal. The corruption occurs from the powerbase in Chicago and the collusion between Democrats and Public sector unions to gobble up every tax dollar they could lock down.
Click to expand...

thank you for agreeing with me.
 
Cassandra said:
How does corruption figure into this dynamic?
I know nothing about Illinois but I do know that many states are in a pickle due to overly generous pension obligations. There should be some mechanism to tie salaries and benefits for public employees to wages and benefits of private sector employees. It is not possible to have sensible benefit negotiations where there are not 2 sides at the bargaining table and I assume that tax payers were not invited to the decision making. Who granted public employees generous benefits?
Click to expand...

Corruption in collusion with labor unions giving them everything they want with no system of check and balances.
Lawmakers are supposed to represent the tax payer they failed to do so paying back big unions for their campaign money
in the form of generous benefits that no one else gets on the taxpayer dime.

this is why there should be a 3rd party independent representative to ensure fair and measured contracts.
Unions are supposedly there to ensure that profit is shared with employee's.

a government doesn't make a profit per say. so unless the state is going to run a huge surplus I don't see how the state can continue
to grant massive concessions like that meets the good faith clause of a contract.
 
Cigar said:
This clearly describes the Illinois Republican Governor; during his election campaign, he said "creating a crisis, creates leverage". Well guess what, he got what he wanted. But don't worry, he'll be just fine, screw everyone else.

That's how an individual who cares more about his own power than serving the people of Illinois. This is how people like Donald Trump thinks.
Click to expand...

Goodness.

I'm sure you were all over this talking point during the "you don't want to let a crises go to waste" phase of the Obama Administration.
 
OpportunityCost said:
That's not correct. Downstate spending is rather frugal. The corruption occurs from the powerbase in Chicago and the collusion between Democrats and Public sector unions to gobble up every tax dollar they could lock down.
Click to expand...

Democrats and unions couldn't POSSIBILY be at fault. Spending more than you bring in makes GOOD economic sense. Lol.
 
You must log in or register to reply here.
Back
Top Bottom