Sometimes we feel like writing a form response to the questions we so often get: When does this blow up? How does Illinois’ state and local fiscal crisis finally resolve?
By “resolve” I mean how things ultimately sort out, for better or worse.
We have lots of informed readers here, including folks in finance and the municipal bond industry. So let’s hear from you.
And don’t give us a glib, short answer like “bankruptcy,” “everybody leaves” or something that vague. Tell us who gets hurt most and what the full picture is. What’s the catalyst? What’s the time frame? How and when does stability ultimately return?
Our answer has long been that it’s a process and not an event – a slow motion train wreck. Termites eating the foundation. Far too many variables are unknown to say when or how things will ultimately turn out, we think, though it’s certain to be enormously painful. That process has been underway for some years. “It’s happening,” as we put it long ago.
That’s apparently not a very satisfying answer because we’re still constantly asked for specifics.
So now we are putting it on you. Have at it. Give us the most concrete answers you can.
P.S. No matter how or when Illinois’ crisis comes to a head, Wirepoints is prepping for the post-blowup period by drafting necessary reforms. If you haven’t already, check out our comprehensive pension plan on our Pension Solutions page.