Fiscal Crisis: On the surface, Illinois and Puerto Rico would seem to have next to nothing in common. But in fact there’s quite a lot, especially when you look at the recent dire economic, fiscal and population trends for both.
Both the Midwestern state and the U.S. island commonwealth are hemorrhaging citizens, with thousands leaving. Perhaps not surprisingly, both also have troubled economies, are deeply in debt and have few prospects for fixing their self-inflicted fiscal problems.
Last week, both S&P and Moody’s downgraded Illinois’ debt to near junk status, the lowest for any state ever. And the debt-rating agencies warn that Illinois might lose its investment grade entirely if it doesn’t do something to rein in chronic defi…
Read the full article at: http://www.investors.com/politics/commentary/what-do-broke-illinois-and-bankrupt-puerto-rico-have-in-common-big-bad-government/