Illinois' rating on $23.4 billion of municipal bonds was cut one level to A- by Fitch Ratings, which cited a rising budget deficit in the next fiscal year for the second-lowest rated state after California.
Illinois and California are trying to out do each other it seems. Another wake up call to the States, if you think you are just going to be bailed out you are in for a rude awakening. There is no court for a State to file bankruptcy. You better start shedding this debt and do it in a hurry.
The pyramid scheme is coming to an end like all pyramid schemes do, by collapsing. You can't save the financial system and you can't save people from losing.
It's not a matter of whether you are screwed or not, it's only a matter of how screwed you are.