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A surprise -- -- not let's talk that last week we were talking on this show actually with a couple of state treasurers about what -- ratings downgrade.
Would need for them and now since then.
Got that downgrade from -- today and those very same to stay treasurers are back with us now Dan Rutherford of Illinois Curtis Loftus of South Carolina.
Thanks to both of you for coming on so.
Now that we have it is Dan I'll start.
With you what does it mean here.
Well I I think it it's one of the indicators is going to be impact -- for myself an investment of our state portfolio.
What we've seen happen because I think more so that flight from.
Europe going to you know security and more secure.
Investment we're seeing the yields for treasury.
Going down so when I desperate morning whatever I -- -- -- my portfolio the yields I get are not what they used to be about a month or two ago.
Right that's we're talking a date and -- half joking earlier -- -- up minded about the retirement.
And now which is making the point not that tough course for him but for for other people looking at a -- it is a tough time I'm sure you hear about this -- -- your state to think about.
Retiring when you can't get much for your money.
I'm not sure how that plans and -- or or or goes into your planning issue as you think about planning for some -- -- state retirees.
That's right well we're fortunate we have a thirty year time horizon.
Our portfolio is about well last time I -- was 26 and a half billion dollars is gonna be less now.
But we were where you were pleased to have a real professional staff.
I'm one of the five members of the commission it's.
And so we we prepared for this you know the professionals a bit better prepared for a long time right the ones that people have to really worry about.
Our book though the folks who are close to retirement you know you get to my he's 55 or she's two years old they don't want to say they supposed have done and also and they get these crashes -- what they did said that the jitters -- the or are they here.
Well the stock or stock investments go way down as they have the last couple -- but they also kept nothing by putting money in bonds there's no.
There's no yield -- and -- all -- let me ask you that Alaska the same question do you feel like you have something to prove to these credit ratings firms be disappear Moody's or.
Or Fitch of -- South Carolina double A plus and and their ratings do you feel after the federal downgrade that there's something for you to prove to say hey we're creditworthy and if so how do you do it.
What we're sure do we actually have to triple -- and one delay plus -- -- one of the highest rated states.
I'll tell you -- the rating agencies are inching places I've only been treasure for seven months I've been to new York and visited with them.
They're disciplined they're highly intelligent folks who know what they're doing.
So it's not just that we're trying to get that rating and we will -- state historic moment to work type of thing.
They enforce it just blown us that's good and where conservative state we're doing that anyway -- our money pretty well let me ask and we'll see what things.
Today it do you see is this something you can do now dead say hey I know it's been tough -- Illinois but He we're doing XYZ to get it under control don't downgrade us still.
It has been very tough and Illinois I -- -- Curtis and what He has opportunity in his state my state is something that.
Is a completely different story and we are.
One of the lowest rated states in the entire nation -- I think is a much of a concern is the the downgrade of the federal rating but I think what.
Is going on in this recent announcement you had about the appointments on this whole debt reduction committee.
-- spending reduction committee.
Illinois has approximately.
You are just under 50% about 40% of its state budget from federal monies -- Medicaid education Homeland Security.
My fear is as that may be effective and I understand the federal.
Budgeting needs to do they do right if it dramatically affects what the state of Illinois gets.
We have little to no little wiggle room with regards to where to go and I think that will be impact full at a party jumped about -- we have to run now guys but thanks a lot -- off descend on -- Rutherford denies these measures.
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