There has been talk for years about Illinois going bankrupt - I guess they have kicked the can about as far as it can be kicked. Some of the numbers in this article are staggering, eg: currently spending $600 million A MONTH more than they are taking in....
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Illinois is about to run out of "other people's money"
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Originally posted by J Sweet View PostChi Town baby! Worst part of it all though is you, me and the rest of us will pay to bail them with our tax dollars or more federal debt (same either way) and they will continue to go along spending as they please.
It boggles my mind that people think they can continue to spend spend spend without negative consequences. That strategy will only get you so far before something has to give.
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I should have said Illinois is slipping into "insolvency" instead of bankruptcy. Currently, states (unlike cities and counties) can't declare bankruptcy. In a bankruptcy they would just default on all their obligations (bonds and other debt, unfunded pension liabilities) and start over. The court would decide how the assets the state has left would be divided up. This would arguably be preferable - a clean break. It would be very painful for many but it would preclude the temptation for the Federal government to step in with some sort of bailout. However unless Congress changes the laws, Illinois is more likely to just go broke when they lose their ability to borrow - and that is real close to happening. The legislature would then finally be forced to make hard decisions, cutting entire spending programs, to avoid defaulting on bonds and pensions . A lot of hard working folks will get hosed and it will be sad and ugly. This has been brewing a long time but reality has caught up with them.Last edited by jerp; 06-21-2017, 01:30 PM.
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