housing prices

Signs Of The Time, Part 100

A milestone has been reached with the “Signs Of The Time” series of posts.

I wasn’t sure what material I’d use for post number 100, when manna from Heaven suddenly appeared in the form of a headline on the home page of my Internet service provider:

Why people won’t say the economy is booming

By most measures, the economy is doing great. So, why are people reluctant to admit it?

Obama: ‘We went through a really scary time’

In the accompanying piece, Sam Ro, managing editor at Yahoo! Finance, wrote Sunday:

By most measures, the economy is doing great. The US labor market is creating around 200,000 jobs a month, which has brought the unemployment rate tumbling to 5%. Meanwhile, home prices are up and stock prices (GSPC) are near all-time highs.

So, why are there so many people so reluctant to acknowledge how good things are today?

One word: trauma.

“Some people are still recovering from the trauma of what happened in 2007-2008,” President Barack Obama said in an interview with Yahoo Finance’s Nicole Sinclair. “You know, we went through a really scary time.”

Trauma has the ability to distort how we perceive our present reality…

(Editor’s note: Bold added for emphasis)

Just when you thought you’ve heard everything, right?

It gets better. Ro continued:

Consider the joy that comes from jumping on a trampoline or the thrill one gets from speeding downhill on a bicycle. For many folks, the unexpected and painful reality of a nasty spill and a couple of fractured bones will forever take away the bliss that once came from those activities. The trampoline and bicycle will continue to offer the same experience, but the trauma can be so intense that it can force many to keep their feet on the ground.

Losing your job, getting evicted from your home, and watching the value of your retirement savings crash can be deeply distressing. And so even when you get a new job, move into a new home, and recoup all of your investment losses, that new persistent feeling of uncertainty that followed the traumatic will discount everything you have…

Any readers ever see that iconic sports film The Natural, starring Robert Redford? Is it just me, or does all this kind of remind you of that part in the movie where the club hires a shrink to talk to the players when everything is going wrong?


“Losing is a disease”
YouTube Video

No, not that bit where the ballplayer gets hit in the (g)nards. But that “losing is a disease” speech.

And just like Roy Hobbs rolled his eyes and walked out of the locker room, I wouldn’t blame any of you for moving on from this post after reading that stuff about “trauma.”

“Trauma has the ability to distort how we perceive our present reality”

I suspect the “present reality” is crystal-clear for a growing number of Americans- trauma not needed.

And in more than a few instances, their economic “reality” definitely does not match what’s being peddled by Washington and its allies in the mainstream media these days.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Source:

Ro, Sam. “Obama uttered a single word that explains so much about America today.” Yahoo! News. 17 Apr. 2016. (https://www.yahoo.com/news/obama-us-economy-americans-recovering-from-trauma-175254482.html). 18 Apr. 2016.

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Robert Shiller: Stocks Look ‘Pretty Frothy,’ Home Prices ‘Getting High By Historical Standards’

Last investment-related piece for the day. Yahoo! Finance Editor-In-Chief Andy Serwer recently interviewed Yale economist Robert Shiller in a “Market Pulse” segment. Serwer brought up the stock market and housing in his chat with the Nobel Prize winner, who correctly-called the dot-com and housing busts of the last decade. These days, Dr. Shiller once again has concerns about both. From their discussion published September 25 on the Yahoo! Finance website:

SHILLER: I think there’s a little bit of over-exuberance in the stock market at the present time.
SERWER: Right. Even with this recent correction?
SHILLER: The correction that we had in August brought the market down 10 percent. But it’s halfway back up again. So it’s still looking pretty frothy

(Editor’s note: Bold added for emphasis)

Dr. Shiller added later:

The market is highly-priced by traditional- well, this isn’t a traditional measure this is a measure that I and my colleague John Campbell developed. On top of that, I have survey data showing that people think the market is overpriced. The percent who think that is quite high now. So, I think this creates a little bit of fear that there could be a correction. When we saw the correction in August of this year there was I think some anxiety thrown into people’s hearts when they also feel that the market almost tripled between 2009 and 2014- it’s really pretty high. And I think there could be a further correction. I certainly am not forecasting that because nobody really knows what the stock market will do. But I think we’re in some danger of that. My instinct would be not to take any extreme moves, not to pull out completely. But also not to be heavily exposed to the market. I think it’s worrisome at this point. Worrisome but not horrible. I think you keep something in the market. But not too much.

(Editor’s note: Bold added for emphasis)

On housing, there was this exchange:

SERWER: We’re seeing the housing market heating up again. Do you think that this is a sustainable recovery?
SHILLER: Well, home prices have been going up. But they’re still not in real terms close to the previous peak in most cities… Is this sustainable? I’m starting to worry a little bit. It’s getting high by historical standards. And it’s another cause for concern. But it’s not like the stock market yet in terms of valuation.

(Editor’s note: Bold added for emphasis)


“Shiller: Stocks and housing are overvalued—here’s what to do about it”
Yahoo! Finance Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Tuesday, September 29th, 2015 Crash Prophets, Housing, Investing, Stocks No Comments

Peter Schiff: ‘Inevitable’ QE 4 Will Lead To U.S. Dollar Crisis

On August 28, 2015, Euro Pacific Capital’s Peter Schiff spoke at The Jackson Hole Summit, “the first ever event to discuss monetary and fiscal policy at the same time as the Central Bankers are discussing policy,” according to sponsor American Principles Project. Schiff, who correctly-called the housing bust and economic crisis last decade, warned those in attendance that because the Federal Reserve isn’t allowing market forces to fix imbalances in the financial system, the United States is ultimately heading towards a dollar crisis. From the presentation:

The Fed needs to raise interest rates right now. Not because the economy can take it, but because it can’t. Because, again, it is a bubble that needs to be popped. The sooner we pop it, the better. But of course we’re going to find out that the Fed didn’t save us from the financial crisis. They simply interrupted it. And they kicked the can down the road. And we’ve now caught up to the can. And, the problem is, because we’ve delayed solving the problem- see, the financial crisis was the beginning of the solution. And the Fed interrupted it. The market was trying to fix what the Fed broke. Real estate prices coming down were part of the solution. Banks failing was part of the solution. That recession was part of the solution. And the Fed interrupted it. And instead they gave us an even bigger bubble. And now we’re going to have to deal with that…

All the real economic recovery is being prevented. The Fed has got it all dammed up with its monetary policy. But it’s afraid to release the dam because it’s going to unleash all of these forces, this creative destruction that is so necessary, because we cannot have this genuine economic recovery that would actually lift living standards and create good jobs for the American people. We can’t do that unless we allow this phony economy that’s been resurrected on the foundation of cheap money collapse. But nobody is going to allow that to happen…

And then they’re going to launch QE 4. Which nobody really understands. I think it’s inevitable. I said this from the beginning. I said that when they launched the very first round of quantitative easing that they had walked into, checked into, a monetary roach motel. That there was no way out. Once they went down this line, that we were in for the duration. You live by QE, you die by QE. I said we’d have more QEs than Rocky movies. And I think they had six of those. And of course they got progressively worse. And so I think QE 4 is going to be even worse than the last rounds. And ultimately… ultimately, where we are headed is to a dollar crisis…


“Peter Schiff at Jackson Hole Summit: The Monetary Roach Motel”
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Jeremy Grantham: Fed Hell-Bent On Stimulating Asset Prices Until ‘Fully-Fledged Bubble’ Forms

Jeremy Grantham, the British-born investment strategist and founder/former chairman of Grantham, Mayo, Van Otterloo & Co. (oversees $118 billion in client assets as of March 31, 2015), has just released his latest investment letter on the GMO website. Writing about the first quarter of 2015, Grantham, whose individual clients have included current Secretary of State John Kerry and former Vice President Dick Cheney, focused on U.S. economic growth and the bubble-blowing Federal Reserve. Regarding growth, Grantham wrote:

I am still just about certain about three things: first, our secular growth rate in the U.S. is indeed about 1.5% (at least as stated in traditional GDP accounting, wherein expensive barrels of oil increase GDP; perhaps closer to 1% in real life); second, economists move their estimates slowly and carefully in order to stay near the pack and minimize career risk (despite the recent IMF heroics); and third, that we do not like to give or receive bad news and, when in doubt, we tend to be optimistic…

On the Federal Reserve and asset bubbles, Grantham noted:

In the Greenspan/ Bernanke/Yellen Era, the Fed historically did not stop its asset price pushing until fully-fledged bubbles had occurred, as they did in U.S. growth stocks in 2000 and in U.S. housing in 2006. Both of these were in fact stunning three-sigma events, by far the biggest equity bubble and housing bubble in U.S. history. Yellen, like both of her predecessors, has bragged about the Fed’s role in pushing up asset prices in order to get a wealth effect. Thus far, she seems to also share their view on feeling no responsibility to interfere with any asset bubble that may form. For me, recognizing the power of the Fed to move assets (although desperately limited power to boost the economy), it seems logical to assume that absent a major international economic accident, the current Fed is bound and determined to continue stimulating asset prices until we once again have a fully-fledged bubble. And we are not there yet

To remind you, we at GMO still believe that bubble territory for the S&P 500 is about 2250…

(Editor’s note: Bold added for emphasis)

The S&P 500 finished up today at 2,114.

Back on August 4, 2014, I blogged about Grantham’s second quarter 2014 letter, in which he predicted:

I am still a believer that the Fed will engineer a fully-fledged bubble (S&P 500 over 2250) before a very serious decline…

Grantham’s other forecasts in his latest letter on the GMO website included:

• U.S. Economic Cycle- “Still seems only middle-aged, despite its measured long duration”

• U.S. Housing Market- “In terms of houses built is still way below the old average, and house prices are only around long-term fair value; there is room for improvement in both in the next two years.”

• U.S. Stock Market Correction- “We could easily, of course, have a normal, modest bear market, down 10-20%, given all of the global troubles we have. If we do, then the odds of this super-cycle bull market lasting until the election would go from pretty good to even better.”

As I’ve highlighted on the “Crash Prophets” page, Jeremy Grantham has an incredible knack for identifying changes in the direction of the stock market. He also nailed the economic crisis late last decade. However, I don’t know how what kind of track record he has with correctly-calling the economic and housing cycles. I guess I’ll just have to see how these two pan out.

An update to the “7-Year Asset Class Real Return Forecasts” chart was also provided in “Are We the Stranded Asset?”, which can be viewed in its entirety on the GMO website here (.pdf format; starts p. 7).

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

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Peter Schiff: U.S. Headed For ‘Major Economic Crisis’ Centered On Dollar

Euro Pacific Capital CEO/Chief Global Strategist Peter Schiff appeared on CNBC World Monday. Schiff, who correctly-called the housing bubble/crash and financial crisis late last decade, warned viewers:

What people have to understand, is because of the Fed and their prior policy mistakes of keeping interest rates at zero, of all this quantitative easing, they have screwed up this economy so badly, that if the Fed were to raise interest rates at any point, they would precipitate a worse financial crisis than the one they caused in 2008. And so we’re not going to get a rate hike, no matter what they say. We’re going to get QE 4, and the next crisis is going to be a dollar crisis…

I think without another dose of QE the bubble is going to pop and we’ll be back in recession. And so to prevent that from happening, and to postpone the day of reckoning, we will get QE 4…

And if you look at the enormity of the debt on the federal balance sheet, on corporate balance sheets, look at real estate prices, the banking sector. You know, all those banks that we’re too big to fail in 2008 are much bigger now than they ever were and they’re very susceptible to even a slight increase in interest rates, which is why the Fed won’t raise them. But you’re right- it’s not going to go on for another six years. We’re going to have a major economic crisis center around the U.S. dollar long before that six-year time period can expire.


“FOMC Rate Hike Hints are a Bluff”
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

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Peter Schiff Says Stock, Housing Markets Down If QE 4 Not Launched In 2015

“The U.S. economy entered 2015 on the most robust streak of consumer spending in years, yet when the first growth figures for 2014 came out Friday they underscored the lack of vigor in the current expansion.

Gross domestic product, the broadest measure of goods and services produced across the U.S., notched an annual growth rate of 2.4% for 2014, the government said Friday, just a touch better than the sluggish average of the nearly six-year-old recovery—and far from the 4% growth of the late 1990s. Fourth-quarter GDP was 2.6%, roughly half the summer’s blowout 5% pace, which was aided in part by a spree of military purchases that wasn’t repeated.

The report offered both hope and red flags for the world’s largest economy…”

The Wall Street Journal website, January 30, 2015

Euro Pacific Capital CEO Peter Schiff discussed the latest U.S. GDP numbers in his January 30, 2015, entry on The Schiff Report vlog on YouTube.com. Schiff told viewers:

Ultimately, what I think has to happen- and it hasn’t happened yet- is that people are going to have to connect these dots, and get their arms around the fact that the U.S. economy is not nearly as prosperous. That this recovery is not legitimate, and that it cannot sustain itself. I mean, how can anybody believe- if you believed that the stimulus worked, if you believe that quantitative easing and zero-percent interest rates stimulated the economy, then how can you take away the stimulus and have the economy perform better without the stimulus than it did with the stimulus? You would have to acknowledge that if you took away the stimulus, you’re going to get less growth. And that’s what’s going to happen. Yet everybody expects more growth…

The only question in my mind is- how long is the Federal Reserve going to maintain the pretense of economic growth and pretend that it stands ready to raise interest rates at some point, when it really is planning on launching QE 4 that will be larger than what they’re doing in Europe. If they don’t launch QE 4 this year, I think the stock market will be down. And not only will the stock market be down, the real estate market will be down. And remember, both the stock market and the housing market are the twin pillars upon which this phony recovery was built. And for those people who think that we’re going to have more economic growth in 2015- 3 percent economic growth which I think is still the consensus in 2015- how is that going to happen? Without any quantitative easing. With rate hikes later in the year. With a falling stock market. With a falling real estate market. You’re going to have the wealth effect working in reverse. In fact, they announced today that the homeownership rate just hit a brand-new 20-year low. And the Fed hasn’t even started to raise rates yet. How is this phony bubble economy going to grow faster under those conditions, than it did last year under the ideal monetary conditions? It can’t. And that is the dichotomy, the inconsistency, that nobody seems to be able to grasp.


“GDP Growth Slows Sharply in 4th Quarter: 2015 to be Worse”
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

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Marc Faber: Gold Going Up 30% In 2015

“BullionVault, an online service for investors to buy and sell physical gold and silver, said its Gold Investor Index fell in December to an almost five-year low.

The gauge, which measures the balance of buyers against sellers, slipped to 50.5 from 52.1 in November, the London-based company said in an e-mailed report today. That’s the lowest level since February 2010 and marked the biggest drop since 2013. A reading above 50 indicates more buyers than sellers…”

-Bloomberg.com, January 6, 2015

Regular readers of Survival And Prosperity know that Swiss-born investment advisor/money manager Marc Faber has been a gold bull for some time. And the publisher of the monthly investment newsletter The Gloom Boom & Doom Report is so confident about a rising price of gold in 2015 (in spite of all the negative sentiment among investors) that he made an eye-opening prediction yesterday. Sara Sjolin reported on the MarketWatch website Tuesday afternoon:

“I’m positive [that] gold will go up substantially [in 2015] — say 30%,” Faber, whose investment letter is called the Gloom Boom Doom Report, said at Société Générale’s global strategy presentation in London on Tuesday.

“My belief is that the big surprise this year is that investor confidence in central banks collapses. And when that happens — I can’t short central banks, although I’d really like to, and the only way to short them is to go long gold, silver and platinum,” he said. “That’s the only way. That’s something I will do.”

(Editor’s note: Bold added for emphasis)

BullionVault

Dr. Faber repeated his recent “bubble in everything, everywhere” statement while in London. Sjolin added:

“We simply have highly inflated asset markets. Real estate is high, stocks are high, bonds are high, art prices are high, and interest rates and short-term deposits are basically zero,” Faber said. “The only sector that I think is very inexpensive is precious metals, and in particularly precious-metals stocks.”

(Editor’s note: Bold added for emphasis)

Faber, who became well-known for advising clients to get out of the U.S. stock market one week before the October 1987 crash and for predicting the 2008 global financial crisis, appeared on CNBC’s Squawk Box back on September 19, 2014, and warned viewers:

Today, the good news is we have a bubble in everything, everywhere– with very few exceptions. And, eventually, there will be a problem when these asset markets begin to perform poorly. The question is- what will be the catalyst? It could be a rise in interest rates not engineered by the Fed, because I think they’ll keep interests rates at zero on the Fed funds rate for a very long time… We could have essentially a break in bond markets at some point. We also could have a strong dollar. A strong dollar has already happened in the last two months signifies that international liquidity is tightening. And when that happens, usually it’s not very good for asset markets.

Dr. Faber also sees a potential investing opportunity in emerging markets, which you can read about in Sjolin’s piece on the MarketWatch website here.

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Robert Shiller On Housing: ‘I Feel A Little Bit Of Anxiety About The Market’

When I want to get an idea of where the U.S. housing market is heading, I turn to Robert Shiller, the Yale professor who correctly-called the “dot-com” and housing busts. And these days, the “crash prophet” is a bit anxious about residential real estate. Dr. Shiller appeared on CNBC this morning, and told viewers the following:

I look at the market as looking on track with expectations but fragile. I worry that- one thing I’ve learned in forecasting home prices is that they’re different from stock prices. If the rate of appreciation is very steady and if it starts slowing down, that could be a sign of a turning point. I’m not calling a turning point yet, but I feel a little bit of anxiety about the market.

(Editor’s note: Bold added for emphasis)


“Robert Shiller: Housing market fragile”
CNBC Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Tuesday, December 30th, 2014 Crash Prophets, Housing No Comments

Institutional Investors In Chicago-Area Homes On Verge Of Cashing Out?

It’s been a while since I’ve talked about the Chicago-area housing market on Survival And Prosperity. But my Sunday paper contained two articles that shed some light on one reason the Chicagoland residential real estate market has been rebounding the last couple of years, and why recent price appreciation looks endangered. First, Mary Ellen Podmolik wrote in yesterday’s Chicago Tribune:

By one estimate, institutional buyers that acquire distressed homes and convert them into rentals bought about 9,500 properties in the Chicago area in a 32-month period that ended in August…

But several housing markets, including Chicago’s, are considered prime places for institutional buyers to cash out if they choose, walking away with tidy profits, according to an analysis by RealtyTrac…

Institutional investors, defined as buyers who acquired 10 or more homes during a year, spent an average of $161,252 to acquire a home here, and that home now has an average market value of $210,126, according to RealtyTrac. That’s a gain of 30 percent. Meanwhile, the S&P/Case-Shiller home price index puts the Chicago area’s home price gain between January 2012 and this past September at 22 percent

(Editor’s note: Bold added for emphasis)

Now, a few pages into the Tribune’s “Real Estate” section, Mary Umberger wrote:

The last one out should turn off the lights. The housing-research firm RealtyTrac says Orlando, Fla., is primed to see the horde of investors who bought up houses during the downturn start heading for the exits. They’ve made their profits, according to the researchers, who calculated that the investment properties’ values increased by 23 percent since January 2012. Price increases in that market are beginning to slow, suggesting that a sell-off may be coming, particularly from the so-called institutional investors who bought foreclosures by the dozens — even by the hundreds — when prices were ebbing. (In addition, RealtyTrac suggested that institutional investors soon may be similarly heading for the doors in Chicago; Columbus, Ohio; Indianapolis; Atlanta; Charlotte, N.C.; and in Jacksonville and Brevard County, Fla.)

(Editor’s note: Bold added for emphasis)

It’s my opinion that the Federal Reserve is still desperately trying to re-inflate the housing bubble (among others) from the last decade. I don’t think this economic “recovery” is on as solid ground as Washington, the Fed, and others want the rest of America to believe. I expect additional stimulus in the coming year(s), and nominal asset prices could remain elevated/go higher as a result. Housing included. So there may not be a mass exodus of institutional investors from residential real estate right around the corner. Of course, something else could always spook these guys and have them running for the exits. Time will tell…


Infamous Housing Bubble TV Commercial
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Sources:

Podmolik, Mary Ellen, “Investors find fewer bargains in Chicago housing market.” Chicago Tribune. 23 Dec. 2014. (http://www.chicagotribune.com/classified/realestate/ct-mre-1228-podmolik-homefront-20141222-column.html). 29 Dec. 2014.

Umberger, Mary. “Florida housing trends may be an early-market barometer.” Chicago Tribune. 22 Dec. 2014. (http://www.chicagotribune.com/classified/realestate/sc-cons-1225-umberger-20141222-column.html). 29 Dec. 2014.

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Illinois Named Worst-Run State In America In 2014

“‘We don’t have the time to mess around. We are in deep, deep trouble financially,’ [Illinois Governor-elect Bruce] Rauner told a meeting of the Illinois Farm Bureau at a downtown Chicago hotel. ‘The next 24 months are going to be rough. And I apologize. I ain’t going to be Mr. Popularity for a little while. That’s OK. Four years from now I think, though, everybody will appreciate what we did.’”

Chicago Tribune website, December 8, 2014

Talk about lists you don’t want to be on. In 2012 and 2013, Illinois was the 3rd worst-run state in the annual best- and worst-run states in America survey conducted by New York City-based financial news and opinion organization 24/7 Wall St.

So how did the “Land of Lincoln” fare in 2014? From the 24/7 Wall St. website on December 3:

How well run is your state? Assessing a state’s management quality is hardly easy. The current economic climate and standard of living in any given state are not only the results of policy choices and developments that occurred in the last few years, but can also be affected by decisions made decades ago, and by forces outside a state’s control.

Each year, 24/7 Wall St. attempts to answer this question by surveying various aspects of each state. To determine how well states are managed, we examine key financial ratios, as well as social and economic outcomes. This year, North Dakota is the best-run state in the country for the third consecutive year, while Illinois replaced California as the worst-run state

(Editor’s note: Bold added for emphasis)

Ouch. Worst part is, the people who brought us this mess are the same ones still in charge, more or less. It will be interesting to see how much of a difference Governor-elect Rauner- who ran on the Republican ticket- can make in the Democrat-controlled state.

24/7 Wall St. went into more detail about my home state’s latest “honor.” From the piece:

Illinois is the worst-run state in the nation. Like many other low-ranked states, more people left Illinois than moved there. Illinois lost more than 137,000 residents due to migration between the middle of 2010 and July 2013. A poor housing market may partly explain the exodus. Median home values fell 16.2% between 2009 and 2013, the second largest drop nationwide. Illinois has extremely poor finances by many measures. Just 39.3% of Illinois’ pension liabilities were funded as of 2013, worse than any other state. Further, the state’s reserves are estimated at just 0.5% of its general fund expenditure, the second lowest reserves rate nationwide. Both Moody’s and S&P gave Illinois the worst credit ratings of any state, at A3 and A- respectively. According to Moody’s, the state’s rating reflects its low fund balances and high pension obligations, as well as its “chronic use of payment deferrals to manage operating fund cash.”

As for our neighbors, Indiana is ranked 28th and Wisconsin comes in at 26th in 2014- down from 19th and 21st- respectively.

That’s quite a hit (9 places) the Hoosiers took from last year. Wonder what’s behind the drop?

Curious as to where 24/7 Wall St. ranked your state in 2014? Head on over to their website here.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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  • Spring Break
    I will be on my “spring break” from blogging on Offshore Safe Deposit Boxes after publishing this post. New material will appear again on the blog starting Monday, May 2. Thanks, Christopher E. Hill Editor
  • Ecuador President Announces One-Time Tax On Millionaires, Workers After Earthquake
    From an Associated Press article on the Fox News Latino website Thursday: President Rafael Correa announced Wednesday night that he is raising sales taxes and will charge a one-time levy on millionaires to rebuild cities devastated by Ecuador’s worst earthquake in decades… Using authority granted by the state of emergency he declared after Saturday night’s […]
  • The Safe House In Singapore
    More safe deposit box news out of Singapore. The Middle Ground, a news site covering that part of the world, ran an article back on March 31 about award-winning bullion dealer Silver Bullion and its subsidiary- The Safe House (TSH), a Singapore private, non-bank vault. Ryan Ong wrote: Silver Bullion is a company that owns […]
  • Bank Branches To Suffer ‘Dramatic Decline’ Over Next Decade?
    Have a safe deposit box at a local bank branch? You may be kissing it goodbye in the next couple of years. Niraj Chokshi reported on The Washington Post website Tuesday: That bank branch on the corner — and the one on the way to work — may not be there much longer. As technology […]
  • Degussa Singapore Latest
    Back on November 3, 2015, I blogged about how Degussa, a leading international player in the precious metals world, had just opened its first Asian branch in Singapore. Yesterday, I came across an article on The Edge Markets website about Degussa Singapore. Jeffrey Tan reported: Degussa Singapore is part of an expansion plan driven by […]