Ratings

Dr. Philip Fischer shares his thesis that among other things, elections are economic statements. This presidential election seems to be telling us that the states are bifurcating. The data supports this and bond ratings should reflect it directly.

States built up rainy day funds, which were clearly inadequate. Unless the Congress moves to help them, they will be cutting programs and rainy day funds in the future will dramatically expand as the states hoard money to protect their current level of expenditures.