Minnesota reaches a deal
Minnesota agrees on a budget, ending a two week shutdown. But is it just accounting tricks? From the NewsObserver.com (emphasis mine):
Minnesota Gov. Mark Dayton and top Republicans agreed Thursday to end a budget impasse that prompted the longest state government shutdown in recent history.
Dayton said the state government would be back in business “very soon,” but he didn’t say exactly when.
The deal to erase a $5 billion deficit came after a big sacrifice from Dayton, who made new income taxes a central campaign message last year and the centerpiece of his budget. He dropped that and said he would accept – with conditions – an offer the GOP put forward on the eve of the shutdown to bring about $1.4 billion into the budget by delaying payments to schools and selling tobacco payment bonds.
Life after QE2
Some market insiders see a downgrade of the USA’s AAA rating as unlikely. Here’s what Daniel Berger, senior analyst at Thomson Reuters Municipal Market Data wrote in a client note: