Standard and Poor’s says Commonwealth of Massachusetts’ reserves too thin to weather a recession

– News covered by Quincy Quarry News with commentary added.

 

What goes up also comes down …
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Standard and Poor’s says the Commonwealth of Massachusetts’ reserves too thin to weather a recession.

 

A decade after the collapse of investment bank Lehman Brothers and the financial crisis it triggered, Standard and Poor’s analysts say only that only twenty states are well-positioned to handle the first-year shock of a recession with their reserves — and Massachusetts is not among the twenty.

 

What goes up also comes down …
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Even wortse, a report from S&P Global Ratings this week placed Massachusetts at an “elevated risk” of financial distress during a hypothetical recession, and thus one of 15 states that analysts said are the most poorly situated in the event of a new and prolonged downturn in the economy.

 

While S&P does not expect a downturn this year, sooner or later one is sure to happen.

 

After all, what goes up usually comes down.

 

Free spending bulls usually get slaughtered
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In turn, considering how the City of Quincy’s reserves are comparably thin as well as highly dependent on state funding, not to mention with the Koch Maladministration is piling up debt faster than a last minute holiday season shopper, one can only properly worry about what S&P is going to have to say about Quincy when it gets around to updating its ratings of local municipalities.

 

Source: S&P says Massachusetts reserves too thin to weather a recession

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