Breitbart/AP: "Downgrade: Illinois worst credit rating in the U.S."
Illinois' already disastrous financial situation worsened Friday as another credit rating agency downgraded its rating to the worst of any state in the country, blaming lawmakers' ongoing failure to resolve a multibillion-dollar pension crisis.So here's the story: the government made promises it couldn't keep and then underfunded the pension fund to the tune of almost $100 billion. Nobody wanted to commit political suicide so they kept kicking the can down the road. Now the borrowing costs for Illinois are going to go way up and the fiscal situation will just continue to deteriorate until corrective actions are taken.
2 comments:
"Doesn't affect me--I voted for Free Stuff!"
/Obama voter
You gptta love how legal obligations are't really legal obligations, as long as they're contactually explicit pension payments.
How would these state governments and companies would respond if people said they no longer felt like paying their tax bills or financial obligations because the economy had declined unexpectedly?
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