Archive for the ‘State & local government’ Category
America’s recovery is neither robust nor dramatic. But it is real
Mar 17th 2012 | WASHINGTON, DC | from the print edition
The Fed will try to force the economy into orbit with more bond purchases
Oct 14th 2010 | Washington, dc
[Greg Ip] ROCKET science may be out of fashion on Wall Street, but it still has a following at the Federal Reserve. All year long officials there have looked for signs that the economy has reached “escape velocity”: growth that is strong enough to bring down unemployment once the propellants of government stimulus and inventory replenishment are spent.
Such signs remain maddeningly elusive.
The entire article is linked here.
America’s most profligate states do not owe as much, proportionately, as Greece. But their politics are just as problematic
Jun 17th 2010 | WASHINGTON, DC
Illinois owes Shore Community Services, a non-profit agency in suburban Chicago, some $1.6m for services to the mentally disabled. The agency has had to lay off a dozen staff. Jerry Gulley, the executive director, says his outfit’s line of credit could be exhausted soon. The bank will not accept the state’s IOUs as collateral. “That’s how sad it is,” shrugs Mr Gulley.
Comparisons between incontinent American states and Greece are all the rage. Read the rest of this entry »
Dec 10th 2009 | WASHINGTON, DC
From The Economist print edition
A federal subsidy may change the market for good
[Greg Ip] THE federal government may have astronomical deficits but it can still borrow with ease at rock-bottom rates. Not so states, municipal governments and other government agencies, such as school districts and public-transport bodies, which have historically borrowed at lower rates than the Treasury. That is because interest on municipal bonds is generally tax-exempt. Investors accept a lower yield on a muni-bond than on a comparable Treasury bond on which they pay tax.
Thanks to the financial crisis, however, that position has changed: municipal yields are much closer to and, in some cases, above those on Treasuries (see chart). Some borrowers have scaled back or shelved planned borrowing. Read the rest of this entry »