After yet another downgrade, Illinois decided to hold back on issuing more bonds:
CHICAGO, Jan 30 (Reuters) – Illinois yanked a $500 million general obligation bond issue slated for Wednesday because of credit concerns that could boost its borrowing costs, in the latest financial blow to the state, which has failed to fix its bloated public pensions.
"We were getting indications of higher spreads than we were anticipating," said Sinsheimer, who declined to discuss specific spread levels. "We felt it was prudent to pull the deal for the time being."
…ok. Curious why it took this long to pull the trigger on holding back with bond issues, given this is what the state's credit spread has looked like since Quinn became governor:
Did they hold back on issuing bonds in 2010?
Nope. (The bit below is from July 2010)
Note the bolded. I guess because the Obama money was coming in, it was time to charge the card to the limit, eh? High interest spread be damned.
But what happened in November 2010? Oh right. Half of Congress flipped back to the Repubs. No more money gusher, except through Fed policy, and that goes only so far.