Salient to Investors:
The National Assn of State Budget Officers said:
- US states reduced taxes and fees this year by $2.3 billion, the deepest cut since F2001.
- By the close of 2014 state spending will be 9.4 % above the peaks reached before the full brunt of the recession.
- Just 12 states, including Florida and New York, increased spending for roads and transportation projects.
The average economist expects the US to grow 2.2% in 2014 versus 2.2% in 2013 and 2.3 % in 2012.
Josh Gonze at Thornburg Investment Mgmt said:
- The improved outlook has driven demand for state debt, with investors willing to accept lower yields.
- States are in a good financial condition, with no problems coming in 2015, and anticipated by most of the market making their bonds expensive.
Read the full article at http://www.bloomberg.com/news/2014-12-09/states-across-u-s-seen-reducing-taxes-by-the-most-since-2001.html
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