The Land of Lincoln is experiencing heavy losses of people and income to other states, new IRS data reveal. Illinois lost more than 86,000 people and $4.75 billion in adjusted gross income to other states from 2015-2016.
A Ponzi scheme is a form of fraud in which early investors see quality returns, not because their money was invested wisely as the investors are led to believe, but because new investors fund the payouts. The cycle perpetuates itself – more and more new investors are needed to continue to fund previous investors' returns at an unbeknownst higher risk to themselves – until it inevitably collapses.
Financial expert Mark Glennon of Wilmette says in his analysis of a new study on state and local pensions that the only way to reduce the substantial obligations facing Illinois funds are by amending the state constitution or through federal bankruptcy.
Illinois lawmakers should heed Moody’s Investors Service’s warnings about the state’s precarious economic health and dire fiscal situation and enact major structural spending reforms to balance the budget.
Suppose there was a popular restaurant in Springfield called Madigan's, it was so popular that they could charge top dollar for all their dishes, so popular that you couldn't get in without a reservation, and you couldn't get a reservation unless you were somebody or knew somebody, and even then you still had to slip the maître d' a C-note to get seated.