So It Begins: Illinois Bankruptcy Acknowledged by the Mainstream Media

[rangerrebew]

So It Begins: Illinois Bankruptcy Acknowledged by the Mainstream Media
24 hours ago
Written by Joe Scudder

 

The fact that Illinois bankruptcy is practically inevitable finally gets reported on.

There are signs of Illinois bankruptcy everywhere. The gridlock in the state legislature may be a cause of it, but it is more significant as a symptom. The Democrat-dominated system has broken down because there is no money left. The usual compromises don’t work anymore because they cost too much.

Another sign is that both Powerball and Mega Millions are halting business in Illinois because the state can’t afford to pay off winners. They’re afraid continuing in Illinois will wreck their reputations.

CBS News reports, “Could Illinois be the first state to file for bankruptcy?”

http://eaglerising.com/44793/so-it-begins-illinois-bankruptcy-acknowledged-by-the-mainstream-media/

[Sanguine]

The seemingly inevitable finally happens.

[rangerrebew]

My daughter used to live in Chicago but she and her husband moved to Berkley, Ca. 4 months ago.  She is visiting us and we talked about Illinois.  She said she is glad to be gone from Illinois because it is so financially poor and California is so much better.  She doesn't seem to realize Mejornia is next.

[kevindavis007]

I commend Rauner for at least attempting something. However, nothing is going to change until King Mike Madigan is gone.  Not going to happen now that Princess Lisa is covering his a**..

[Fishrrman]

I'll reckon that if you drew a line across Illinois 30 miles south of Chicago, and then "cut off" the southern portion and made it into its own state, that that new state would run a budget surplus. ;)

I recall reading that there's no legal mechanism by which a state can "declare bankruptcy", insofar as the bankruptcy laws are written. Municipalities, yes, but states... no.

Well, looks like there's going to be a first time for everything, law or no law.

Perhaps it might be a good move for the democrats to go a-beggin' to the Republicans in Congress to amend the federal bankruptcy laws to include states as among the entities that have legal standing to file for bankruptcy in court. This could probably be covered by only a few additional pages of legislation.

Whether or not the Pubbies should go along with it, can't say.
This is uncharted territory.

If a state -could- go into federal court seeking bankruptcy protection, who could the court in turn appoint as trustee(s)?
Perhaps a panel appointed by Congress?

Maybe not a bad idea, considering who is running Congress right now!

[truth_seeker]

There have been a few cities in California, file for BK.

Orange County years ago, when the treasurer made bad risky investments.

San Bernardino
Vallejo
Stockton

Government employee pension promises depend on unrealistic interest earnings, so they are supplemented out of general funds. Until general funds face dilemmas like continuing police, paying pensions, raising taxes.

[kevindavis007]

I'll reckon that if you drew a line across Illinois 30 miles south of Chicago, and then "cut off" the southern portion and made it into its own state, that that new state would run a budget surplus. ;)

I recall reading that there's no legal mechanism by which a state can "declare bankruptcy", insofar as the bankruptcy laws are written. Municipalities, yes, but states... no.

Well, looks like there's going to be a first time for everything, law or no law.

Perhaps it might be a good move for the democrats to go a-beggin' to the Republicans in Congress to amend the federal bankruptcy laws to include states as among the entities that have legal standing to file for bankruptcy in court. This could probably be covered by only a few additional pages of legislation.

Whether or not the Pubbies should go along with it, can't say.
This is uncharted territory.

If a state -could- go into federal court seeking bankruptcy protection, who could the court in turn appoint as trustee(s)?
Perhaps a panel appointed by Congress?

Maybe not a bad idea, considering who is running Congress right now!

That would be correct. The reality is this, The City of Chicago is in deep s**t when it comes to the money.. Mayor Daley, spent money like there was no tomorrow to build parks, and try to bring the Olympics to Chicago.  He almost sold off everything. Literally.


That is correct, there is no legal option for a state to declare bankruptcy..


We are in uncharted territory.. Basically the chickens have come home to roost.

[Bigun]

I'll reckon that if you drew a line across Illinois 30 miles south of Chicago, and then "cut off" the southern portion and made it into its own state, that that new state would run a budget surplus. ;)

I recall reading that there's no legal mechanism by which a state can "declare bankruptcy", insofar as the bankruptcy laws are written. Municipalities, yes, but states... no.

Well, looks like there's going to be a first time for everything, law or no law.

Perhaps it might be a good move for the democrats to go a-beggin' to the Republicans in Congress to amend the federal bankruptcy laws to include states as among the entities that have legal standing to file for bankruptcy in court. This could probably be covered by only a few additional pages of legislation.

Whether or not the Pubbies should go along with it, can't say.
This is uncharted territory.

If a state -could- go into federal court seeking bankruptcy protection, who could the court in turn appoint as trustee(s)?
Perhaps a panel appointed by Congress?

Maybe not a bad idea, considering who is running Congress right now!

I don't think you would need to go 30 miles.  20 would probably be enough.

[Suppressed]

I'll reckon that if you drew a line across Illinois 30 miles south of Chicago, and then "cut off" the southern portion and made it into its own state, that that new state would run a budget surplus. ;)

If true, that's good news.  Unfortunately, New York State has been in this situation so long, and the economy has been trashed for so long, lots of the Red areas of the state are loaded with lots of people reliant on handouts and drugs.

[Oceander]

If true, that's good news.  Unfortunately, New York State has been in this situation so long, and the economy has been trashed for so long, lots of the Red areas of the state are loaded with lots of people reliant on handouts and drugs.

Unfortunately much of upstate NY has been made to pay the price for the political idiocies of the liberals, and couldn't survive on its own right now.

[mystery-ak]

Unfortunately much of upstate NY has been made to pay the price for the political idiocies of the liberals, and couldn't survive on its own right now.

Il is a liberal hell hole in Springfield..they control the government and won't pass a budget...one person by the name of Madigan [a lib] controls everything as Speaker of the House....

[Suppressed]

Unfortunately much of upstate NY has been made to pay the price for the political idiocies of the liberals, and couldn't survive on its own right now.

Yup...that was the point I was trying to make.  They have been lulled into dependency.   

[IsailedawayfromFR]

The GOP needs to get strong on ensuring taxpayers from other states do not subsidize the failed state of Illinois.

If they do not, there will be several more of the liberal hellholes standing in line, like New York, California, and of course Puerto Rico.  Any of the large cities could also hold their hands out.

[bigheadfred]

Look out for the domino effect.

Total State Debt: ranked from lowest debtor state (#1) to highest debtor state (#50)



Hawaii ranks as the highest debtor state, yet they are proposing universal basic minimum income?

http://www.gopbriefingroom.com/index.php/topic,267941.0.html

[IsailedawayfromFR]

Look out for the domino effect.

Total State Debt: ranked from lowest debtor state (#1) to highest debtor state (#50)



Hawaii ranks as the highest debtor state, yet they are proposing universal basic minimum income?

http://www.gopbriefingroom.com/index.php/topic,267941.0.html

We have heard ad nauseum about how Governor Kasich has provided so well for his state of Ohio.  This table shows he is simply robbing future generations.

[thackney]

Total State Debt: ranked from lowest debtor state (#1) to highest debtor state (#50)

Some of those on that list can be misleading since it only takes into account debt. 

Alaska had a state debt of approximately $29.8 billion.
https://ballotpedia.org/Alaska_state_budget_and_finances

But the Alaska Permanent Fund has $59.7 billion saved up.
http://www.apfc.org/home/Content/home/index.cfm

[Hondo69]

Dissolve the Land of Lincoln

This is a good piece in the Chicago Tribune

http://www.chicagotribune.com/news/columnists/kass/ct-dissolving-illinois-kass-met-20170620-column.html

[Weird Tolkienish Figure]

This isn't new BTW:

https://en.wikipedia.org/wiki/State_bankruptcies_in_the_1840s

State Bankruptcies in the 1840s occurred in Arkansas, Illinois, Indiana, Louisiana, Maryland, Michigan, Mississippi, Pennsylvania, and the territory of Florida.