Fed is Lender of Last Resort for Illinois

Wirepoints reports Illinois set to borrow from Fed’s “lender of last resort” facility a second time

Illinois is set to borrow several billion from the Federal Reserve’s Municipal Liquidity Fund (MLF) for a second time if a new U.S. stimulus package and a progressive tax hike scheme for Illinois don’t come through, according to comments from Illinois Gov. J.B. Pritzker.

Illinois already borrowed $1.2 billion from the MLF earlier this year in an attempt to close some of the state’s 2020 budget shortfall.

The borrowing is significant since Illinois is the only state in the country to tap the MLF. The Fed created the MLF in April to be a “lender of last resort,” where cities, states and other government entities can go if they can’t raise money as a result of COVID-19. 

Covid Not The Problem

The MLF is for states and municiplaitioes that cannot raise money due to Covid.

Finances, not Covid are the problem in Illinois.

Illinois’ Alleged Balanced Budget 

The Illinois constitution requires a balanced budget.

The Illinois budget is “balanced” by borrowing money year after year. 

Governor Pritzker “balanced” the fiscal year 2021 budget by borrowing $5 billion from the Fed.

$261 Billion Shortfall

$261 Billion Shortfall

Year in, year out the numbers keep adding up. Moody’s new estimate of Illinois pension shortfall increases to $261 billion

Moody’s estimates the shortfall in Illinois’ five state-run pension funds will jump to $261 billion in 2020. The rating agency, in “Medians – Pension and OPEB liabilities fell in fiscal 2019 ahead of jump in 2020,” says a drop in interest rates and lower investment returns will worsen Illinois’ shortfall. 

Moody’s estimation for all 50 states makes Illinois’ $261 billion shortfall the worst in the country. 

Illinois’ shortfalls will be even larger when

After last night’s dysfunctional presidential debate, complete with two out-of-touch presidential contenders and one out-of-his-element debate moderator, we can all use a good laugh – at least this one isn’t at our own expense.

Loanry.com, a financial information platform, asked 5,086 US loan brokers and personal bankers “to reveal the strangest reasons they had ever seen on a personal loan application.”

Ten of the weirdest reasons people have asked to take out personal loans are as follows:

  1. To buy a tiger
  2. To build a statue of a loved one
  3. To follow David Hasselhoff on tour around Europe
  4. To keep an affair secret
  5. To hire an undisclosed celebrity to be present at the birth of their child
  6. To build a working replica of a trebuchet (a type of catapult)
  7. To go missing for a while
  8. To hire an acting troupe to recreate the Game of Thrones Red Wedding at their own
  9. To fund a trip to every Applebees in the US
  10. To get a qualification in taxidermy
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That “top 10” alone is a lot to absorb, but if you want more, Loanry’s full list of 20 reasons can be found here. (Okay, getting a full diamond grill mouthpiece makes the list.)

The fact is, more than 20 million Americans actually had personal loan debts in 2019 – more than double the amount of people compared with 2012. Additionally, from 2015-to-2019 the number of people with personal loan debts totaling more than $30,000 had risen by 15%, according to data from Experian.

As for the weird loan applications, Loanry sums it all up best.

“We can’t be certain which, if any, of these applications for loans were successful,” the company states. “However, we encourage everyone to be cautious when taking on debt, to use loans responsibly, and to ensure they pursue

(Bloomberg) — Thailand will borrow $46 billion next year as the Southeast Asian nation expands its fiscal stimulus measures to counter the economic impact from the coronavirus pandemic amid dwindling state revenue.



a person standing in front of a building: A pedestrian walks past closed stores at a deserted Khao San Road in Bangkok, Thailand, on Wednesday, Sept. 2, 2020. Thailand has reported zero locally-transmitted Covid-19 cases for 100 days in a row, joining a small group of places like Taiwan where the pathogen has been virtually eliminated. Photograph: Taylor Weidman/Bloomberg


© Bloomberg
A pedestrian walks past closed stores at a deserted Khao San Road in Bangkok, Thailand, on Wednesday, Sept. 2, 2020. Thailand has reported zero locally-transmitted Covid-19 cases for 100 days in a row, joining a small group of places like Taiwan where the pathogen has been virtually eliminated. Photograph: Taylor Weidman/Bloomberg

A cabinet meeting chaired by Prime Minister Prayuth Chan-Ocha on Tuesday approved borrowing of 1.47 trillion baht in the fiscal year starting Oct. 1, according to a government statement Tuesday. The fund-raising is seen down 11% from a revised 1.66 trillion baht this year, official data show.

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The borrowing will be used to finance various economic stimulus programs, budget deficit, infrastructure investments and bailout of some pandemic-hit state enterprises, the government said. The public debt-to-GDP ratio will widen to 57.23% in 2020-21, near the legal limit of 60%, it said.

Thailand’s government and the central bank jointly unveiled a 1.9 trillion baht stimulus early this year to cushion the blow from the pandemic but has so far spent only about a third of the amount. The central bank last week called for “more targeted and timely” government policies to support the recovery in the tourism and trade reliant economy, that’s on course for its worst-ever contraction.

Here are some of the highlights of the 2020-21 borrowing plan:

1.47 trillion baht will be new borrowingDebt repayment will be 387.4 billion bahtExisting debt under management totals 1.28 trilllion baht

The cabinet also approved 291 billion baht investment by 44 non-listed state enterprises next fiscal year, Rachada Dhnadirek, a government spokeswoman, told reporters in Bangkok. The