Kansas ends conservative experiment
Comments
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Since there seems to be a preoccupation with bond ratings going on, let me offer the Hardcore Husky investment tip of the day: whenever the political punditry pronounces the financial demise of a US state or municipality, be sure to take a close look at the underlying credit fundamentals. In most cases, but not all, there will be a huge overreaction and sell off, that does not gibe at all with the reality of the situation. For example, many pundits of a certain political stripe have proclaimed the death of California because it fits a convenient political narrative. Same thing could be going on from the other end of the spectrum regarding Kansas. But if you bought State of California GOs in 2009, you would be looking at a total return that would make @thechatch jealous. Now there are many problems with the California economic model that has resulted in the policy objective of killing the middle class in order to save it, but if people continue to dismiss the credit, I will be happy to profit at your expense.
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Fixed2001400ex said:
GurgleHoustonHusky said:
And a reminder...if a credit downgrade is an indictment of policy...CirrhosisDawg said:
Kansas' Issuer Credit Rating (equivalent to General Obligation) was downgraded by S&P from AA+ to AA with a negative outlook on Aug. 6, 2014. The negative outlook from S&P was affirmed on march 25, 2015. This is what S&P wrote:sarktastic said:Spending in Kansas between 2013 and 2014 INCREASED 8.2%.
Even so, Kansas still enjoys a AA+ credit rating by S &P.
Kansas spends 27% of its state budget on K-12 education. Only 5 states spend more on K-12 education as a percentage of total state expenditures.
"Offsetting credit factors for the ICR include what we consider:
A sizable mid-fiscal 2015 budget gap that was covered with a mixture of ongoing and one-time budget adjustments. The mid-year budget corrections are projected by the state to avoid a negative balance, but would leave the state with close to a zero general fund balance at fiscal year-end 2015. We believe that income tax rate cuts have created legislative challenges in enacting a structurally balanced budget for fiscal 2016; The likelihood that general fund balances will remain low due to the governor's proposal to change funding of state general fund reserves; andSignificant unfunded pension liabilities and annual pension contributions that are below the actuarial annual required contribution (ARC), offset in part by Kansas' moderate tax-supported debt burden. The governor has proposed a $1.5 billion pension bond issue, which, if issued, may somewhat improve pension funded levels, but with the trade-off of higher debt."
S&P downgrades U.S. credit rating for first time
Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.
Time for someone around here to start gurgling... -
Yes, zero interest rates, Central bank stock, bond and derivative buying has been profitable since 2009.CirrhosisDawg said:Since there seems to be a preoccupation with bond ratings going on, let me offer the Hardcore Husky investment tip of the day: whenever the political punditry pronounces the financial demise of a US state or municipality, be sure to take a close look at the underlying credit fundamentals. In most cases, but not all, there will be a huge overreaction and sell off, that does not gibe at all with the reality of the situation. For example, many pundits of a certain political stripe have proclaimed the death of California because it fits a convenient political narrative. Same thing could be going on from the other end of the spectrum regarding Kansas. But if you bought State of California GOs in 2009, you would be looking at a total return that would make @thechatch jealous. Now there are many problems with the California economic model that has resulted in the policy objective of killing the middle class in order to save it, but if people continue to dismiss the credit, I will be happy to profit at your expense.
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FIFYHoustonHusky said:
The discussion just went way the fuck over my head.2001400ex said:
GurgleHoustonHusky said:
And a reminder...if a credit downgrade is an indictment of policy...CirrhosisDawg said:
Kansas' Issuer Credit Rating (equivalent to General Obligation) was downgraded by S&P from AA+ to AA with a negative outlook on Aug. 6, 2014. The negative outlook from S&P was affirmed on march 25, 2015. This is what S&P wrote:sarktastic said:Spending in Kansas between 2013 and 2014 INCREASED 8.2%.
Even so, Kansas still enjoys a AA+ credit rating by S &P.
Kansas spends 27% of its state budget on K-12 education. Only 5 states spend more on K-12 education as a percentage of total state expenditures.
"Offsetting credit factors for the ICR include what we consider:
A sizable mid-fiscal 2015 budget gap that was covered with a mixture of ongoing and one-time budget adjustments. The mid-year budget corrections are projected by the state to avoid a negative balance, but would leave the state with close to a zero general fund balance at fiscal year-end 2015. We believe that income tax rate cuts have created legislative challenges in enacting a structurally balanced budget for fiscal 2016; The likelihood that general fund balances will remain low due to the governor's proposal to change funding of state general fund reserves; andSignificant unfunded pension liabilities and annual pension contributions that are below the actuarial annual required contribution (ARC), offset in part by Kansas' moderate tax-supported debt burden. The governor has proposed a $1.5 billion pension bond issue, which, if issued, may somewhat improve pension funded levels, but with the trade-off of higher debt."
S&P downgrades U.S. credit rating for first time
Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.
Time for someone around here to start gurgling... -
Full court pressing2001400ex said:
FIFYHoustonHusky said:
The discussion just went way the fuck over my head.2001400ex said:
GurgleHoustonHusky said:
And a reminder...if a credit downgrade is an indictment of policy...CirrhosisDawg said:
Kansas' Issuer Credit Rating (equivalent to General Obligation) was downgraded by S&P from AA+ to AA with a negative outlook on Aug. 6, 2014. The negative outlook from S&P was affirmed on march 25, 2015. This is what S&P wrote:sarktastic said:Spending in Kansas between 2013 and 2014 INCREASED 8.2%.
Even so, Kansas still enjoys a AA+ credit rating by S &P.
Kansas spends 27% of its state budget on K-12 education. Only 5 states spend more on K-12 education as a percentage of total state expenditures.
"Offsetting credit factors for the ICR include what we consider:
A sizable mid-fiscal 2015 budget gap that was covered with a mixture of ongoing and one-time budget adjustments. The mid-year budget corrections are projected by the state to avoid a negative balance, but would leave the state with close to a zero general fund balance at fiscal year-end 2015. We believe that income tax rate cuts have created legislative challenges in enacting a structurally balanced budget for fiscal 2016; The likelihood that general fund balances will remain low due to the governor's proposal to change funding of state general fund reserves; andSignificant unfunded pension liabilities and annual pension contributions that are below the actuarial annual required contribution (ARC), offset in part by Kansas' moderate tax-supported debt burden. The governor has proposed a $1.5 billion pension bond issue, which, if issued, may somewhat improve pension funded levels, but with the trade-off of higher debt."
S&P downgrades U.S. credit rating for first time
Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.
Time for someone around here to start gurgling... -
Artificially low interest rates? You take advantage - das a lotta money. nice check profit!
https://www.youtube.com/watch?v=kzsSpDyBc_4 -
unfrozencaveman said:
Artificially low interest rates? You take advantage - das a lotta money. nice check profit!
https://www.youtube.com/watch?v=kzsSpDyBc_4
https://www.youtube.com/watch?v=HveMAHf2UBg -
Was it my posts about loving guns, killing stuff, objectifying women, and thinking Obama is a douchenozzle that led you to believe I'm a liberal and tolerant?TierbsHsotBoobs said:
I've read your work.dflea said:
I'm not a liberal, and I'm not tolerant, either.TierbsHsotBoobs said:
Great open-minded liberal tolerance as always.dflea said:All I know is Toppy can fuck right the hell off. Texas is a shithole - the whole fucking state is. I don't give a fuck if they stuff dollar bills in your ass every day, the fact that you have to live in that shitstain of a state to get it makes it not worth it.
Make your money in Washington or California, deal with the fucking idiots in charge, and you're way better off than living in a bunghole of a state like Texas or Kansas.
No wonder Houston and Topy line up to defend their fucked-up state. How else you you defend being so fucking stupid that you'd live in some shithole like that?
HTH
Uhhh - ok. -
That's the funny part. The conservatives around here think that if you don't agree with them on everything, you are a liberal faggot who drives a Prius and loves Obama.dflea said:
Was it my posts about loving guns, killing stuff, objectifying women, and thinking Obama is a douchenozzle that led you to believe I'm a liberal and tolerant?TierbsHsotBoobs said:
I've read your work.dflea said:
I'm not a liberal, and I'm not tolerant, either.TierbsHsotBoobs said:
Great open-minded liberal tolerance as always.dflea said:All I know is Toppy can fuck right the hell off. Texas is a shithole - the whole fucking state is. I don't give a fuck if they stuff dollar bills in your ass every day, the fact that you have to live in that shitstain of a state to get it makes it not worth it.
Make your money in Washington or California, deal with the fucking idiots in charge, and you're way better off than living in a bunghole of a state like Texas or Kansas.
No wonder Houston and Topy line up to defend their fucked-up state. How else you you defend being so fucking stupid that you'd live in some shithole like that?
HTH
Uhhh - ok. -
Hello2001400ex said:
That's the funny part. The conservatives around here think that if you don't agree with them on everything, you are a liberal faggot who drives a Prius and loves Obama.dflea said:
Was it my posts about loving guns, killing stuff, objectifying women, and thinking Obama is a douchenozzle that led you to believe I'm a liberal and tolerant?TierbsHsotBoobs said:
I've read your work.dflea said:
I'm not a liberal, and I'm not tolerant, either.TierbsHsotBoobs said:
Great open-minded liberal tolerance as always.dflea said:All I know is Toppy can fuck right the hell off. Texas is a shithole - the whole fucking state is. I don't give a fuck if they stuff dollar bills in your ass every day, the fact that you have to live in that shitstain of a state to get it makes it not worth it.
Make your money in Washington or California, deal with the fucking idiots in charge, and you're way better off than living in a bunghole of a state like Texas or Kansas.
No wonder Houston and Topy line up to defend their fucked-up state. How else you you defend being so fucking stupid that you'd live in some shithole like that?
HTH
Uhhh - ok.
@TierbsHsotBoobs is not a conservative around here.
hth
