Fitch: Downgrades Loom for U.S. Cities and States

[Northern Boy]

..................................

[str8thinker]

Thanks, but where's the link?

[GlassSteagallfan]

From Google:
http://www.ft.com/cms/s/0/cfadc5fe-3a33-11e0-a441-00144feabdc0,s01=1.html#axzz1EHtvTVCL

[Darla Ken Pearce]

No matter how things may appear ~ the down grades have taken their toll and will not be tolerated. A new financial system is in place and will take over shortly. Freedom will be asked for and received throughout the world as witnessed in Egypt and other parts of the World and this will include the United States of American as well. There is a bit of mucking about but it's all over but the shouting. By sharing negative aspects of our world or how it appears to be ~ we delay the great and fabulous changes that are at hand by way of lowering the collective consciousness and keeping it at the low level it's been at leading to wars and hardship. We do not want to go there but it's always an option. If you are attracted to the current negative perspective ~ carry on, I'm just saying....there is a better way at hand. xoxox

[str8thinker]

I had no idea you are the anointed one.

[Northern Boy]

No matter how things may appear ~ the down grades have taken their toll and will not be tolerated. A new financial system is in place and will take over shortly. I'm just saying....there is a better way at hand. xoxox


Please riddle me this Batgirl .

A new Financial system ....... do we need it ? Once the old one is dead why bring in a new one ??? Who has stepped forward and declared him/herself the administer of such a plan ? Did you me or anyone else consent to this person being in charge . Will there be an exchange of old script for new and if so at what rate will it be?
Once the old financial system is dead and currency declared worthless isn`t that the time the rich and the penniless descend to the same level of worth. Are we all not finally equal at that very moment no one above the other? Then why bring in that ragged old monetary control system to salvage the social elite and prop them up again to take over ?


The Illinois Pension Nightmare


The state of Illinois hopes to issue $3.7 billion in bonds, next week. The funds will be used to pay this year's pension payments.

Writes NYT, (which is starting to get the picture of the serious problems in the muni market:)



That short-term thinking is not unlike Americans taking out home equity loans to pay for cars and vacations before the housing bust...In his budget address, [Illinois Governor] Quinn praised what he called “the most far-reaching public pension reform in our nation’s history,” a law passed last year sharply reducing the pensions of state workers to be hired in the future and cutting the state’s yearly pension contributions for the next few years. Some actuaries who have studied the documents have expressed strong reservations, saying the new contribution schedule is not based on any accepted actuarial methodology and puts the pension system at risk.

...“When I read this [the bond prospectus], quite frankly, it made me ill to my stomach, because that pension plan has been consistently abused now for at least the last 16 or 17 years,” said Brad M. Smith, president-elect of the Society of Actuaries, which is based in Illinois.


Mr. Smith, who was speaking on his own behalf, is also chairman of Milliman, a large actuarial firm. He called the state’s schedule of pension contributions for the coming years “incredibly dangerous,” adding: “There’s a reasonable chance that these plans will run out of money.”


I hasten to add that people in the know don't think the state of Illinois can survive fiscally more than a couple of years, let alone its doling out funds to the state pension. The crises is coming be prepared and be out of muni bonds,

[Northern Boy]

Here is a look at how bad it is getting. Take note of the money owed and the yrs left IF things stay as they are now and don`t get worse

The First 10 Major Cities That Will Run Out Of Pension Fund Money

Projections by Robert Novy-Marx and Joshua Rauh show the average city has $15,000 per household in unfunded pension liabilities. A lot of it is off-balance sheet, hidden from easy public view. Many, many cities are in trouble. Here are the top ten major cities that are in trouble and when they will run out of money:

http://www.kellogg.northwestern.edu/faculty/rauh/research/NMRLocal20101011.pdf

#1 Philadelphia- Unfunded liability of $9 billion, $16,696 per household, only 4 years before the pension accounts are empty

#2 Chicago- Unfunded liability of $44.8 billion, $41.966 per household, money runs out in 7 years

#3 Boston- Unfunded liability of $7.5 billion, $30,901 per household, money runs out in 7 years

#4 Cincinnati- Unfunded liability of $2 billion, $15,681 per household, money runs out in 8 years

#5 St Paul- Unfunded liability of $1.4 billion, $13,686 per household, money runs out in 8 years

#6 Jacksonville- Unfunded liability of $4 billion, $12,944 per household, money runs out in 8 years

#7 New York City- Unfunded liability of $122 billion, $38,866 per household, money runs out in 9 years

#8 Baltimore- Unfunded liability of $3.7 billion, $15, 420 per household, money runs out in 10 years

#9 Detroit- Unfunded liability of $6.4 billion, $18,643 per household, money runs out in 11 years

#10 Fort Worth- Unfunded liability of $2 billion, $7,212 per household, money runs out in 11 years


AS you can see things are looking dreary many

A side note with the London and canadian stock market merger along with the german and american market merger both are just in the planning stages get ready to see massive layoffs in these areas shortly when these mergers are finalized

[The Lawnman]

None of these scenarios take into consideration the states Comprehensive Annual Financial Report (CAFR) funds. These states have squirrel holed billions of USD into "off book" trust accounts. Check out Walter Burien's work regarding CAFR account research at www.cafr1.com. I have downloaed the CAFR from my states website and found this information to be true. Again, we have to be discerning...things are very seldom as they seem.