Archive for Economics

Illinois could learn credit rating lessons from Michigan

Credit: Shutterstock photo

Michigan clawed its way out of the cellar many years ago, but is not without problems.  We continue to learn about the games that governors have played once they leave the office.  Snyder’s shenanigans are starting to come to light even now.  However, even with these issues, the Great Lakes State is dramatically better off than it’s neighbor to the southwest.

Illinois’ Great Lakes neighbor Michigan may have some lessons that Illinois could learn when it comes to finances. Credit rating agency S&P’s latest Illinois report removed the Land of Lincoln from a negative to a stable outlook because of the budget and $5 billion tax hike imposed by lawmakers in July. But, Illinois still has the lowest credit rating […]

What to Do When Government Money Goes Bad

It can’t happen in the US, right?

First, they sold their car.

Next, they cut meat from their diets. And now, they skip meals to ensure survival.

This is the story of Vanessa Posada and her husband Adolfo.

They live in Venezuela. And their money simply doesn’t go that far anymore.

Falling oil prices have sent the economy into free fall. Per experts, the inflation rate is 720% and rising.

And today, an estimated 93% of Venezuelans don’t have enough money to buy food.

She completed her university studies. Then she got a job as a schoolteacher. And she later got married and had a child.

But that’s not enough to save her from government money gone bad.

Fed likely to begin reversing crisis-era stimulus next month, meeting notes suggest

Honestly, we’re not betting on this one.  And even if so, 25 basis points is not significant.  (Except what it will cost regarding government debt service.)

Federal Reserve officials are prepared to begin reversing the central bank’s major crisis-era stimulus measures next month, notes from their July meeting published Wednesday suggest. At the July 25-26 meeting, several Fed members were prepared to begin shrinking the central bank’s balance sheet, the new minutes from the meeting revealed. Most preferred to defer the decision until a later meeting. While the group was […]