
Do you live in a “death spiral” state? Californians take note
What is a “death spiral state”? If you live in the largest state on the West Coast, I think you know the answer. The Forbes article below uses objective criteria to establish rankings — with the idea of suggesting that folks should not buy homes or municipal bonds in the declining states. The comparison uses two criteria. One is the standard mish-mash of economic factors we have all come to expect — factors covered in my dreary “Breaking Bad” fact sheet comparing CA with the other states.“[It]is a scorecard of state credit-worthiness done by Conning & Co., a money manager known for its measures of risk in insurance company portfolios. Conning’s analysisfocuses more on dollars than body counts.Its formula downgrades states for large debts, an uncompetitive business climate, weak home prices and bad trends in employment. But the other criterion is more interesting. It’s a ratio of takers to payers.It … Read More