Illinois forced to delay bond sale, should have been cut to junk a long time ago

The State of Illinois is functionally insolvent. The state has $137 billion in unfunded pension liabilities ($241 billion if you actually use reasonable actuarial assumptions); $7 billion in unpaid bills and counting; virtually no rainy day fund; hasn't had a balanced budget in 20 years; has already jacked up taxes so high that it has … Continue reading Illinois forced to delay bond sale, should have been cut to junk a long time ago

Fed’s Bullard urges reopening the economy to avoid depression, Fink on tax hikes to pay for shutdown

Federal Reserve Bank of St. Louis President James Bullard did not mince words on why state and local governments need to end their lockdowns (which New Jersey just extended by another month today, incidentally): Federal Reserve Bank of St. Louis President James Bullard said policy makers need to mitigate the ongoing risks from the coronavirus … Continue reading Fed’s Bullard urges reopening the economy to avoid depression, Fink on tax hikes to pay for shutdown

A software designer destroys the code behind the Imperial model that initially led to the lockdowns that broke the economy

Well, someone looked under the hood of the Imperial model, and now we know why it spits out meaningless gibberish. This is amazing - Code Review of Ferguson’s Model: [full text of blog post below, none of this is my commentary, I just can't figure out how to block quote it and save the images] … Continue reading A software designer destroys the code behind the Imperial model that initially led to the lockdowns that broke the economy

66% of coronavirus cases in New York were people who stayed home

The worst part of state and local governments' decisions to lock down their economies is that the whole thing was pointless from an epidemiological perspective. The "curve" looks pretty much the same whether people observed social distancing or not. But then there is this "shocking" news from New York's Governor Cuomo - the majority of … Continue reading 66% of coronavirus cases in New York were people who stayed home

Why the idea of states filing for bankruptcy is not going away

A couple weeks ago, Senate Majority Leader Mitch McConnell said that he supported the idea of creating a bankruptcy regime so financially distressed state governments could restructure their contractual obligations. People on the left have been losing their minds ever since. How dare he suggest that the federal government not bail out blue states, when … Continue reading Why the idea of states filing for bankruptcy is not going away

New Jersey is a month away from a liquidity crisis

From CNBC: Gov. Phil Murphy said Monday that New Jersey could be headed toward an “Armageddon” scenario, with an inability to fund public schools and police, if it doesn’t receive more federal assistance due to the coronavirus pandemic. Murphy, a Democrat, said on CNBC’s “Squawk Box” that New Jersey’s revenues “have fallen off a table” due to the … Continue reading New Jersey is a month away from a liquidity crisis