By Ted Dabrowski and John Klingner, from April 16, includes “Financial markets react to news – good and bad – far faster than the credit rating agencies do. If that holds true today, then expect Illinois to be junk rated soon. The bond markets are already pricing Illinois bonds at interest rates that amount to junk-level yields.” (Note: I’m reminded of a quote “The role of rating agencies is to go out into the battlefield after the battle is over, and to shoot the wounded.” Note also that bailouts can bolster bondholders, at the expense of other parties.)