Link More on the Takers Vs. the Makers...Higher ratio is more takers to each 1 maker. Eleven states made Forbes' list of danger spots for investors including California, New York, Illinois, and Ohio. They warned (and with the cliff it is even more critical), if you have muni bonds in these states - clean up your portfolio; if your career takes you there - rent, don't buy! Two factors determine their list of 'fiscal hellholes'. The first is whether there are more takers (someone who draws money from the government) than makers (the gainfully employed). The second is a state credit-worthiness score (via Conning) based on large debts, uncompetitive business climates, weak home prices, and bad trends in employment. Conning rates North Dakota the safest state to lend money to, Connecticut the most hazardous. A state qualifies for the Forbes' death spiral list if its taker/maker ratio exceeds 1.0 and it resides in the bottom half of Conningâs ranking. See below for the 11 states to avoid...no matter what Bob Toll, Larry Yun, Bob Pisani, or Alexandra Lebenthal tells you.. 11 - Ohio Taker ratio: 1.00 10 - Hawaii Taker ratio: 1.02 9 - Illinois Taker ratio: 1.03 8 - Kentucky Taker ratio:1.05 7 - South Carolina Taker ratio:1.06 6 - New York Taker ratio: 1.07 5 - Maine Taker ratio: 1.07 4 - Alabama Taker ratio: 1.10 3 - California Taker ratio: 1.39 2 - Mississippi Taker ratio: 1.49 1 - New Mexico Taker ratio: 1.53 As Forbes advises:
Interesting, somewhat concerned about the How of their algo's to get to these numbers. Not being lazy, but did you spend some time checking the formulas Tsing?
It's Forbes, it's usually pretty reliable on the numbers. The methodology might be suspect, but I haven't looked into it. I posted it before my Jujitsu class, so I didn't get much time to look. I'll check it out tomorrow.
This whole "Takers" thing is troubling if government spending on things like the military is included. Look at SC for example. I have no idea what their state budget looks like, but I wouldn't hesitate to move there. One of the few places in the country with solid conservatives in charge, top to bottom, except for a few obvious congressional districts.
We're sunk, the sky is falling, but I have my cell phone and my computer. What else matters? I think I will become a democrat so I don't have to worry about this stuff.
Look back to the 1920-1930s... when "government" tax take was about 20% of American's income. Today, 50% and even more in some cases. What did we get for that? Where is it leading us? What we really need is 100 MILLION AMERICANS... STORMING CAPITOL HILL... TELLING CONGRESS AND ODUMBO... FUCK YOU GUYS AND THE HORSE YOU RODE IN ON! America needs a RADICAL CHANGE (Not Odumbo's BULLSHIT "hope and change")... back to the principles of the Founders. Without it we are doomed to become Venezulea/Cuba.