"The economic recession and financial crisis has shone a light on perennial deficits and chronic under-funding of public pensions.

Investors are demanding higher interest rates to lend to Illinois than to any of the other 50 states.

Ten-year bonds backed by the full taxing power of Illinois yield 5.37 per cent, nearly a full percentage point more than deficit-plagued California and more than two percentage points over the most highly rated municipal bonds, according to Thomson Reuters MMD."  http://www.ft.com

To read the rest of this revealing story google: "Debate rages over muni bond defaults"