And that extent is not great. Only exception is Illinois.
You would have to compare the incremental increase
in debt service on debt issued after the increase in
riskiness to overall budget revenues.


On Sun, May 15, 2011 at 9:52 PM, Jim Devine <[email protected]> wrote:

> it's a bid deal to the extent that its extent boosts risk premiums,
> making the states' financial situations even worse.
>
> On Sun, May 15, 2011 at 5:51 PM, Max Sawicky <[email protected]> wrote:
> > US State govt debt is no big deal. The real issue is the revenue
> > crash and employment drop from the recession.  Debt service
> > has first dibs on revenue, often by law or even state constitution,
> > otherwise for all practical purposes, and is not a big share of
> > budgets. The problem is the recession occasioning attacks on
> > services and pensions, combined with inadequate Federal
> > anti-recession aid.
>
> --
> Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
> way and let people talk.) -- Karl, paraphrasing Dante.
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