We've spent a lot of time of late discussing the precarious financial positions of states like Illinois, Connecticut and New Jersey which each suffer from their own myriad of financial threats including massive budget deficits, monstrous unfunded pension liabilities, pending debt downgrades, etc. In case you've missed those notes, here is a recap for your amusement:
Authored by Alastair Williamson via Squawker.org,
Breaking story out of Baltimore City, Maryland, where a citizen ceasefire is being issued by the community for August 04, 2017 through august 06, 2017.
The ‘no violence for 72-hours’ or ‘nobody kill anybody’ campaign comes at a time where the city is spiraling out of control. According to WJZ, “Baltimore struggles with a record high murder rate, and those in power are desperate for solutions”.
Authored by Mike Krieger via Liberty Blitzkrieg blog,
Turning and turning in the widening gyreThe falcon cannot hear the falconer;Things fall apart; the centre cannot hold;Mere anarchy is loosed upon the world,The blood-dimmed tide is loosed, and everywhereThe ceremony of innocence is drowned;The best lack all conviction, while the worstAre full of passionate intensity.
One week ago, Illinois passed its three year-overdue budget in hopes of avoiding a downgrade to junk status, however in an unexpected twist, Moody's said that it may still downgrade the near-insolvent state, regardless of the so-called budget "deal." In fact, a downgrade of Illinois may come at any moment, making it the first U.S. state whose bond ratings tip into junk, although as of yesterday, credit rating agencies said they were still reviewing the state's newly enacted budget and tax package.
America’s largest banks and their shareholders were quick to celebrate a recovery in trading revenues over the past year. But they may have spoken too soon.
Wall Street vets know they can’t fight the Fed – especially with the ostensibly “data-dependent” central bank committing to returning the Fed funds rate to 3% over the next two years. But with the arrival of the summer doldrums ushering in low trading volumes across markets, traders are acknowledging that they can’t fight the seasons, either.